DIFC Investments to Acquire SmartStream Technologies from TA Associates, Management and Employees
November 12, 2007
DIFC Investments, the investment arm of the Dubai International Financial Centre (DIFC), and TA Associates, a leading growth private equity and buyout firm, today announced that DIFC Investments has agreed to acquire SmartStream Technologies (SmartStream), the UK based software licensing and professional services business.
DIFC Investments will acquire SmartStream from TA Associates, SmartStream management and employees in an all cash deal, which values the company at approximately £200 million. The management team remains highly committed to the business and will be incentivised to continue SmartStream’s development as a leader in the industry.
His Excellency Dr Omar Bin Sulaiman, Chairman of DIFC Investments, said: “This acquisition enhances the DIFC’s role in the global financial services industry and further establishes the DIFC as a global gateway for international financial business”.
DIFC Investments aims to create a new generation of hosted information and trade processing services, and its intention is that SmartStream will be at the heart of the secure, scaleable trade processing and data management platform it is building.
Commenting on the acquisition, Bisher Barazi, Managing Director of DIFC Investments, said: “We are pleased to acquire SmartStream, a recognized global leader in the development of transaction lifecycle management software used in the back and middle office of many of the world’s leading banks, asset managers, hedge funds and money managers. It has excellent products, a committed management team and exciting plans for future development in what is the world’s largest IT market, financial services technology.”
Ajit Nedungadi, Managing Director of TA Associates said: “We are delighted to reach this agreement with DIFC Investments. This has proven to be a very successful relationship for SmartStream and TA Associates, and we thank the management team for their hard work and support during this period. The DIFC is an exciting strategic platform that will support continued growth and investment in SmartStream.”
Ken Archer, CEO of SmartStream, said: “SmartStream has established itself as a global leader in transaction lifecycle management. As we enter the next phase of our development, we are delighted to have the backing and support of DIFC Investments, which has an obvious interest in and a deep understanding of the global financial services industry in which we operate. For our customers, partners and employees it is very much business as usual. Being at the heart of this massive industry transformation that DIFC Investments are driving will undoubtedly create exciting opportunities for SmartStream to accelerate our growth over the medium and long term.”
The transaction is expected to close in approximately one month from now.
DIFC was advised on the transaction by Deutsche Bank AG, while Close Brothers advised SmartStream and TA Associates.
For further information, please contact the following:
DIFC Corporate Communications
Tel: +971 4 361 1986
Fax: +971 4 362 2236
Mobile: +971 50 884 1862
Tel: + 44 (0)20 7758 2800
Direct: +44 (0)20 7758 2812
Mobile: +44 (0)7776 240145
Tel: +971 4 362 2433
Fax: +971 4 362 2236
Tel: + 1 617-574-6796
Tel: + 1 617-536-0366
Lawson Dodd Communications Management
E-mail: + 44 (0)20 7535 1364
Mobile +44 (0) 7971 350606
Tel +44 (0)20 7847 8021
Mobile +44 (0)7795 096153
Notes to Editors
About the DIFC
The Dubai International Financial Centre (DIFC), which acts as a gateway for international capital flows between Western Europe and East Asia, was established as an onshore hub for global finance. More than 450 firms have joined the DIFC. They operate in an open environment complemented by world-class regulations and standards. The DIFC offers its member institutions incentives such as 100 per cent foreign ownership, zero tax on income and profits, and no restrictions on foreign exchange. In addition, their business benefits from modern infrastructure, operational support and business continuity facilities of uncompromisingly high standards. For further information please refer to: www.difc.ae
About DIFC Investments
Operating under the umbrella of the DIFC, DIFC Investments administers commercial activities such as the operation and management of any current and future subsidiaries, the development of the centre's investment strategy and relevant policies, and any other strategic investments or alliances that will further the goals and objectives of the DIFC and contribute to the fulfillment of its vision. The broad mandate of DIFC Investments also includes responsibility for all non-public administration activities previously carried out by the DIFC Authority, the body of the DIFC charged with developing overall strategy and providing direction and supervision to the centre.
Founded in 1968, TA Associates is one of the largest and most experienced private equity firms. With offices in Boston, London and Menlo Park, the firm manages $10 billion in capital and has invested in more than 380 companies. TA provides management buyout, leveraged recapitalization and growth equity capital primarily for technology, financial services, business services, healthcare and consumer businesses. TA has been an active investor in the European markets with numerous investments, including eDreams, GlobeOp Financial Services, ION Trading Group, Jupiter Asset Management, M and M Direct, Sophos Plc and Tempur-Pedic International. The firm opened its London office in 2003 and is continuing to expand its investment efforts in Europe. More information about TA Associates can be found at www.ta.com.