Equity Firm Buys Trading Technologies
Posted by Colin Lambert. Last updated: November 1, 2021
In what may be a significant move in the derivatives trading technology world, private equity firm 7Ridge, founded by former Deutsche Boerse CEO and UBS and Goldman Sachs FICC head Carsten Kengeter, has bought Trading Technologies (TT) for an undisclosed sum.
The firms say the investment will enable TT to grow organically and fund targeted strategic acquisitions. 7Ridge says limited partners in the fund behind the acquisition – Cboe Global Markets and Singapore Exchange, support the tranasction.
Although 7Ridge says that TT will remain independent, Tim Geannopulos, chairman of the Board and CEO of Trading Technologies, will step down, but will remain “actively engaged with the company”. He says, “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. Maintaining the firm’s independence will allow us to retain the incredible talent within our organisation and further strengthen our relationships as a valuable ally to our clients, our partners and the industry. We’re excited that 7Ridge and its strategic limited partners including global exchanges Cboe and SGX believe in the future of our company and our vision of becoming the operating system of capital markets.”
The firm says it is intended that Keith Todd will then be appointed CEO of TT to lead the company as it embarks on this next growth phase. Todd is currently chairman of KRM22, a risk management solution provider, he has also held the executive chairman (agency trading and processing) role at Ion Trading, and the same at Ffastfill.
“Trading Technologies has built an exceptional global client base and great relationships with exchanges all over the world, as well as robust technology and a dedicated, experienced team,” Todd says. “The firm has an aggressive roadmap for product and market expansion. 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.”
Kengeter adds, “We thank TT’s shareholders for selecting us and look forward to accelerating the company’s dedicated contribution to its clients’ and users’ success. The firm has built the market-leading SaaS-based, modular, multi-tenant platform for professional derivatives trading that will bring new efficiencies and strength to the global financial system. Our own operating experience as well as that of our limited partners will strengthen TT’s position as the operating system of capital markets.”