Private equity firm Bregal Sagemount has invested nearly $100 million in Options, a software-as-a-service provider for the financial services industry. The target says the investment will help to pursue new growth opportunities, as the financial services IT sector has seen an spike in outsourcing.
Founded in 1993 as a hedge fund technology services distributor, Options offers outsourced software technology and managed information technology services. The target serves global capital markets and financial service firms from its offices in London, New York, Hong Kong, Singapore, Toronto, Dublin, Geneva, and Belfast, Ireland. Bregal Sagemount’s investment will be used to scale the business through technology and personnel.
“Their investment in Options is an endorsement of the team, services, and technology we have built over the last 25 years,” says Options CEO Nigel Kneafsey on the deal with Bregal Sagemount. “We believe that the rapid growth in the business in the last few years is underpinned by the accelerated wave of outsourcing in financial services IT globally.”
Based in New York, Bregal Sagemount typically invests up to $150 million in transactions. The firm’s usually back middle-market businesses focused in a few sectors, including: logistics, software, healthcare technology and financial technology.
Bregal Sagemount has remained active in M&A recently. In June, the middle-market PE firm purchased Lux Research, a data analytics and insights service provider. In February, Bregal Sagemount bought a majority stake in Internet access provider Single Digits. In 2016, the firm acquired Discovery Data Inc. from software company Ipreo LLC, and also backed logistics service provider Internet Truckstop Group.