Specialized growth equity firm, 7RIDGE announced on Sunday that it has entered into an agreement to acquire Trading Technologies International, which is a provider of trading software, connectivity and data solutions.
With the acquisition, the new owner will aim for organic growth of the platform and has plans to make targeted strategic acquisitions in the future through the subsidiary.
Two of the top Exchange operators, Cboe Global Markets (Cboe) and Singapore Exchange (SGX) have participated in the deal as limited partners. Both of them will support the transaction by making partial investments in Trading Technologies.
SGX is prepared to invest around $200 million in the private equity firm for the purpose of the acquisition, while Cboe’s upcoming contribution amount is not known yet. The Chicago-based exchange operator is planning to fund the acquisition with cash in hand and with increased debt in the fourth quarter of the ongoing fiscal.
A SaaS Platform
Trading Technologies offers Software-as-a-Service (SaaS) platform for specifically the derivatives trading platforms. According to the company, its clients include top futures commission merchants (FCM) and brokers globally, along with leading Buy-Side institutions.
“We've been in search of the right strategic partner to help Trading Technologies achieve the tremendous potential of our pioneering new technology platform and accelerate the expansion of the business and product roadmap,” said Tim Geannopulos, Chairman and CEO of Trading Technologies.
Though the company will continue to operate independently even after the acquisition, the new owner has plans to change the leadership. Keith Todd, who comes with two decades of financial markets leadership experience, is expected to be the new Trading Technologies CEO.
“The firm has an aggressive roadmap for product and market expansion,” said Todd. “I have long been a firm believer in the power of SaaS to deliver to clients better technology, greater cost savings and more efficient use of resources.”
