ConvergEx (formerly BNY ConvergEx) positions itself at the point where technology and trading meet. Through subsidiaries including Eze Castle Software, LiquidPoint, G-Trade Services, and Westminster Research Associates, the company offers agency brokerage software as well as investment advisory and commission management services. Products include Eze (order management platform), Sonic (execution management system), and Millennium (alternative trading system). It serves such clients as asset managers, hedge funds, broker-dealers, and financial intermediaries. ConvergEx operates from some two dozen locations worldwide, but most of sales come from the US. The company is owned by CVC Capital Partners.
ConvergEx has operations in Australia, Brazil, Hong Kong, Singapore, South Africa, the United Arab Emirates, the US, and the UK.
Change in Company Type
ConvergEx filed an initial public offering (IPO) seeking $400 million in May 2011 but withdrew it a couple of months later when it agreed to be sold to private equity firm CVC Capital Partners. The company had been owned by The Bank of New York Mellon (BNYM), private equity firm GTCR Golder Rauner, and its own management and directors.
Although ConvergEx's revenue grew from 2007 through 2010 (when it last reported financial data), it recorded losses in three of those four years (only 2009 saw a small profit). Revenue was up nearly 3% in 2010 over 2009, but interest expense related to debt grew by 18% for the year. ConvergEx had more than $700 million in long-term debt in 2010; it restructured that year, primarily laying off employees in its investment services business.
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ConvergEx relies on internal development to add new features to its various products. It has developed or upgraded more than 60 products since the beginning of 2009.
The company continues to look overseas for growth as well. It opened an office in Singapore in 2010 to support users of its Eze OMS application in the Asia/Pacific region where it targets investment managers with a need for its trading, portfolio management, and compliance applications. The opening of this location continued the company's ongoing investment in the region. In 2013 it targeted customers in Hong Kong, Australia, Japan, Malaysia, Indonesia, and Korea with new and improved algorithmic trading technologies.
In early 2013 the company announced plans to sell its platform software business - primarily the Eze Castle and RealTick units - as it focuses on executing and trading software. The deal also provides ConvergEx with some financial flexibility.