Private equity firms Spectrum Equity and TA Associates have each acquired a minority stake in Bats Global Markets Inc.
Lenexa, Kan.-based Bats is an equity exchange company that operates two stock markets in the U.S. – the Bats BZA Exchange and BYX Exchange- and Bats Chi-X Europe, based in London. Terms of the transaction were not disclosed.
The deal comes after Bats experienced a recent string of bad luck. In early August, the company shut down its main market for almost an hour due to a malfunction in its computer systems. In January, the company reported that computer issues allowed some 12,000 trades that violated rules intended to ensure all investors get the best prices for equities. And in March 2012, Bats cancelled its initial public offering after the company couldn't get its own stock trading.
Spectrum Equity, headquartered in Boston, invests $25 million to $100 million in companies. The firm has raised more than $4.7 billion since it was founded in 1994. Current investments include Lightower Fiber Networks and ISelect Ltd. The firm was one of food delivery website GrubHub’s initial investors.
Boston-based TA, which was founded in 1968, has invested in more than 425 companies. In July, the firm closed on a minority recapitalization of Prometheus Group. In June, TA agreed to pick up a minority stake in data provider Fractal Analytics.
Rosenblatt Securities Inc. served as financial adviser to Spectrum and TA.
In April, Forex Trader FXCM Inc. proposed a merger with online trading services provider Gain Capital Holdings Inc. Gain rejected the deal, but agreed to buy Global Futures & Forex Ltd., instead. Also in April, The Nasdaq OMX Group Inc. (Nasdaqw: NDAQ) said it would buy ESpeed, which provides trading technology, for $750 million.