Advent Drops Out Of Auction For Eze Castle

Target: Eze Castle

Price: $900 million to $1 billion

Sellers: ConvergEx Group, GTCR

Financial Adviser: Goldman Sachs

The auction of Eze Castle, which is owned by ConvergEx Group, is in its final stages, three sources told sister Web site peHUB. TPG Capital is still vying for Eze Castle, as well as Hellman & Friedman, sources said. Advent International, which had teamed up with Advent Software, has dropped out, sources said.

Eze Castle provides trading software mainly for hedge funds. The sale also includes RealTick, which provides an EMS platform used by more than 1,000 institutional clients. The unit generates about $80 million EBITDA, sources have told peHUB. Price talk for Eze Castle is $900 million to $1 billion, an investment banker said. Goldman Sachs is advising on the process.

GTCR, the Chicago buyout firm, and BNY Mellon each own roughly one-third of the ConvergEx business.

New York-based ConvergEx, a financial industry software company, was formed in 2006 when Eze Castle Software combined with BNY Mellon’s institutional businesses. GTCR and BNY Mellon invested at the time. GTCR has invested $150 million over time in ConvergEx, sources have told peHUB.

In September, after failing to sell itself to CVC Capital Partners, ConvergEx put Eze Castle on the block, peHUB previously reported.

Executives of GTCR, TPG and BONY could not be reached for comment. ConvergEx, Hellman & Friedman and Advent declined comment.

Luisa Beltran is a senior writer for peHUB.