December 16, 2010

ConvergEx Group today said it has agreed to acquire RealTick, a multi-broker, cross-asset electronic execution management system (EMS) from Barclays Bank PLC. Financial terms of the deal were not disclosed.

With the close of the acquisition, which is expected by year-end 2010, pending regulatory approval and other conditions, ConvergEx will broaden its technology to include a multi-asset class, easily deployable and completely broker-neutral execution platform, according to the press statement.

“We chose to acquire RealTick because of its highly scalable technology, proven track record and talented and dedicated staff. The industry is moving rapidly towards consolidating execution management systems and we believe we can leverage ConvergEx’s global footprint to expand RealTick’s multi-broker network to make it the most comprehensive and global offering in the industry,” commented Joseph M. Velli, chairman and CEO of ConvergEx Group.

The company previously acquired Eze Castle order management system (OMS) in 2006, and has developed hybrid OMS/EMS functionality.

“This deal is part of ConvergEx’s long-standing strategy of growing its technology offering for asset managers and financial intermediaries by building or acquiring best-in-class tools that complement our existing product lines. This is another example of technology that we will be able to place on our clients’ desktops to help them improve their workflow and performance," further stated Velli.

“We are thrilled to be joining forces with ConvergEx,” stated Stuart Breslow, RealTick’s CEO in the release. “This transaction aligns us with a premier technology company with a global reach and a deep client base. Our clients have grown to expect RealTick’s continual innovation of technologies that help them analyze, execute and evaluate performance. These clients will now benefit from the broad range of complementary capabilities that ConvergEx has to offer.” RealTick was originally created by Chicago-based Townsend Analytics, and then it was acquired by Lehman Brothers but operated independently. After Lehman declared bankruptcy in September 2008 Barclays bought the investment bank’s North American operations which included RealTick.

“Over the past several years, RealTick has become a leader in the market, offering a cutting-edge product which is widely utilized across the institutional client base,” commented Jerry Donini, head of Equities at Barclays Capital. “We look forward to continuing to work with RealTick as it enters its next phase of growth.”

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Ivy is Editor-at-Large for Advanced Trading and Wall Street & Technology. Ivy is responsible for writing in-depth feature articles, daily blogs and news articles with a focus on automated trading in ...