ConvergEx Puts Eze OMS and RealTick on the Block
Traders Magazine Online News, September 11, 2012
Eze, on the other hand, is attractive because it has hundreds of hedge fund clients. Its EBITDA is estimated at between $65 and $68 million a year. Private equity firms are familiar with Eze, as many of them looked at investing in the company last year, said a source. As a result, that should cut down on the time it will take for a buyer to emerge. "Everyone is pretty much up to speed; they know who they are, what they do and what their numbers are," the source said.
Interest should be keen, he added, pointing out that last year there were several losing bids from private equity firms that came in around $1.7 billion and $1.8 billion. Roughly 500 institutions use Eze, according to the source. In 2010, Eze had more than 400 institutions on board. It added 74 clients in 2011 and so far in 2012, it has another 44 new clients.
ConvergEx, according to the firm's S-1 filing, earned $45 million its first year in business. However, its net income was negative for the next four years, though Dec. 31, 2010. It lost $49 million in that period. Long-term debt at the end of 2010 was $714 million, according to the S-1.
A deal should get done this year, a source said, but if it will close by Dec. 31 is another question, as "that would be incredibly tight."
Goldman began marketing Eze and RealTick the first week in September.
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