ConvergEx Signs Agreement to Offload Software Platform Business to Private Equity Investment Firm TPG, Appoints New Senior VP to LiquidPoint

ConvergEx Holdings LLC announced on January 23 that it has signed a definitive agreement to sell its software platform business,

ConvergEx Holdings LLC announced on January 23 that it has signed a definitive agreement to sell its software platform business, consisting primarily of Eze Castle Software LLC and RealTick LLC to an affiliate of TPG Capital.

After the close of the transaction, Eze Castle Software and RealTick will operate under the name Eze Software Group and ConvergEx will continue to focus on and expand its remaining global execution, institutional brokerage and trading related businesses.

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“This transaction represents the beginning of a new chapter in ConvergEx’s history,” commented ConvergEx Chairman and Chief Executive Officer Joseph M. Velli. “From the time that our company was formed, it has always been our strategy to grow and realize the value in our businesses. During the past year, we were approached by numerous parties and we carefully considered the option to divest these businesses. We moved forward with this transaction because it provides a great opportunity to create two optimal businesses, ConvergEx and Eze Software Group, which can each focus on their unique strengths and serve clients’ needs.”

“This transaction will also allow ConvergEx to allocate resources to increase our position as a leader in technology-based global execution and trading products and services while also strengthening our financial position.”

ConvergEx and Eze Software Group will maintain a close relationship after the close of the transaction. The parties have established a cooperative marketing agreement that will ensure that each firm’s services will continue to be offered on an integrated basis. Each firm will be able to cross-sell the other company’s services.

Both GTCR and BNY Mellon, founding shareholders of ConvergEx, remain committed to the long-term success of ConvergEx and will maintain their significant investments in the company.

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“ConvergEx has experienced tremendous growth since GTCR first invested in the company in 2006 and we are confident in the future of the business,” said Collin Roche, principal of GTCR.

A point of interest will be the corporate direction which ConvergEx is taking this year. Just one day prior to declaring the proposed relinquishing of their platform business, in line with the group’s intention to focus on execution and trading related businesses, it was announced that ConvergEx had appointed Craig Reilly as Senior Vice President of Options Sales within the company’s LiquidPoint division.

convergexThe LiquidPoint System provides a method of control for options execution. In addition to order entry, routing and execution services, LiquidPoint provides data, pricing information, and analytics to its end-users.

Based in New York, Mr. Reilly will be responsible for growing LiquidPoint’s electronic execution client base. He will report to David Cross, managing director of Sales and Business Development.
Mr. Reilly comes to ConvergEx from Knight Capital where he grew Knight’s listed agency options business and contributed to Knight’s options technology initiatives. Prior to that, he held numerous roles at On Point Executions, Hampshire Trading and Israel A. Englander.

“We are thrilled to have Craig as part of the LiquidPoint team. He brings extensive options industry and sales experience, as well as deep relationships to this position and I am confident that our customers will benefit greatly from his knowledge and dedication,” commented Mr. Cross.

LiquidPoint’s offering is specifically aimed at the requirements of institutional options traders. Combining sophisticated electronic trading tools with superior order execution services and focusing on customer support, LiquidPoint provides a complete platform to help maximize options execution efficiency with the intention of improving performance and overall results.

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