ConvergEx Said to Weigh Sale of Options-Technology UnitMatthew Monks
ConvergEx Group, the trading-services firm that withdrew plans for an initial public offering this month, is seeking buyers for its options-technology business, according to people familiar with the matter.
Goldman Sachs Group Inc. is advising New York-based ConvergEx on the sale, which may fetch $150 million, said the people, who asked not to be named because the process is private.
ConvergEx is selling the options business as part of a broader effort by its owners, GTCR Golder Rauner LLC and Bank of New York Mellon Corp., to exit the company after failing to sell and take it public in the last two years. The options-technology business offers data processing, routing and other services to options traders. The division is part of LiquidPoint LLC, a ConvergEx broker-dealer unit.
ConvergEx is “committed to our options business” and has “no plans to sell off our LiquidPoint broker-dealer subsidiary,” Elizabeth Anderson, a company spokeswoman, said in an e-mailed statement. “As a general matter, we do not comment on market rumors or unfounded speculation.”
Michael DuVally, a spokesman for Goldman Sachs, declined to comment on ConvergEx. Executives with GTCR didn’t return calls for comment. Kevin Heine, a Bank of New York spokesman, declined to comment.
The company withdrew plans this month for an IPO filed in early 2011. A sale agreement that year with CVC Capital Partners Ltd. was terminated amid a regulatory probe of non-electronic trading practices at ConvergEx’s Bermuda subsidiary.
Anderson declined to comment on the outcome of that investigation by the Securities and Exchange Commission and Department of Justice.