July 18 (Bloomberg) -- CVC Capital Partners Ltd. is near an agreement to buy ConvergEx Inc., a trading-software company partly owned by Bank of New York Mellon Corp., said two people with knowledge of the situation.
A deal valued at about $1.9 billion may be announced as soon as this week, said one of the people, who declined to be identified because the matter is private. ConvergEx, based in New York, had also been considering an initial public offering and in May filed to raise as much as $400 million.
ConvergEx was formed in the 2006 merger of a section of Bank of New York’s securities unit with Eze Castle Software. Bank of New York holds about one-third of the company, as does GTCR Golder Rauner LLC, the Chicago-based private-equity firm. The company’s management team and directors hold the remaining ownership stakes.
Spokesmen for Bank of New York, GTCR and London-based CVC declined to comment. A ConvergEx spokeswoman also declined to comment.
ConvergEx posted revenue of $610 million in 2010 and earnings before interest, taxes, depreciation and amortization, excluding certain items, of $162 million. The company sells software to handle trading and risk management, and also functions as a broker-dealer. Most of the world’s biggest hedge and mutual funds are customers, as are the 10 largest investment banks, ConvergEx said in its May regulatory filing.
The company’s biggest competitors include Bloomberg LP, parent of Bloomberg News, and SunGard Data Systems Inc., ConvergEx said in the filing.
CVC Capital Partners, which manages a 10.8 billion euro ($15.2 billion) fund, has been deploying capital this year. In June, it agreed to acquire BJ’s Wholesale Club Inc., the third-largest U.S. warehouse-club chain, with Leonard Green & Partners LP for $2.8 billion in cash.
The talks between CVC and ConvergEx were reported earlier by DealReporter.
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