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GTCR Creates New Trading Technology Provider

Dash Financial and LiquidPoint are merging to form Dash Financial Technologies

Dash Financial and LiquidPoint have agreed to merge to create financial technology company Dash Financial Technologies. LiquidPoint is Convergex’s options trading and technology business. Convergex is backed by GTCR. The PE firm will own a majority stake in the combined company.

Peter Maragos, who will lead DFT as CEO, says the combined company is positioned to “help the buyside, sellside and exchanges navigate the ever-evolving market structure and regulatory environment.”

Dash Financial, founded in 2011 and based in New York, provides data and analytics to buyside traders. LiquidPoint, also located in New York, offers options technology and routing services for sellside clients. Convergex is a brokerage and trading services provider.

GTCR is a Chicago-based private equity firm that has invested in more than 200 companies across the financial services and technology, healthcare, and technology, media and telecommunications industries. The firm has invested more than $10 billion in capital since its inception in 1980. GTCR's investments is underlined by the Leaders Strategy, a program that involves "finding and partnering with management leaders in core domains to identify, acquire and build market-leading companies through transformational acquisitions and organic growth." In 2016, GTCR reached a deal to buy RevSpring Inc., a billing and customer communications service provider for businesses. GTCR won Mergers & Acquisitions' 2013 M&A Mid-Market Private Equity Firm of the Year award.

An increasing need for financial technology is driving M&A in the sector. Bregal Sagemount bought financial services data provider Discovery Data Inc.; Broadridge Financial Solutions Inc. (NYSE: BR) picked up investment software company QED Financial Systems Inc.; and ETrade Financial Corp. (Nasdaq: ETDC) has agreed to acquire online trading company Aperture New Holdings Inc.

Raymond James Financial Inc. (NYSE: RJF) and Sidley Austin LLP are advising Dash. Kirkland & Ellis LLP is representing GTCR and Convergex.

 

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