Silver Lake sells its trading technology firm to Centerbridge for $1.2 billion

Jeffrey aronson

The New York-based private investment firm Centerbridge Partners has paid $1.2 billion for IPC, a software company that aims to speed up the trading cycle for financial market professionals.

This transaction follows what has been one of IPC’s best years and will help accelerate our continued momentum,” said Neil Barua, Chief Executive Officer of IPC and former Silver Lake Operating Partner, in a statement.  “Centerbridge has a proven track record of driving long-term sustainable growth, and we look forward to building on our successes with our new owners.”

Commenting on the deal, Jared Hendricks, Senior Managing Director of Centerbridge said: “Having followed the Company for a number of years, we are excited to back IPC and its management team through its next phase of growth and development.  IPC is uniquely positioned to deliver tailored, state-of-the-art solutions to serve the complex needs of the financial services community. We look forward to continuing to support IPC’s momentum.”

The sale, which is expected to be completed by January, earns a significant profit for Silver Lake, which bought IPC from Goldman Sachs in 2006 for $800m. It is one of the longest-held investments by the company, which currently holds around $23 billion in assets.

Last year, the company helped Michael Dell to buy out Dell, the technology company, in a contentious deal that has seen both Silver Lake and Michael Dell earn a paper gain of 90% on their investment.

Meanwhile, in November, it was reported that Centerbridge was considering putting in a bid for OneMain, Citigroup’s subprime lending business. Since the financial crisis, the company, founded by Mark Gallogly and Jeffrey Aronson (pictured), has also made significant gains in private equity; information leaked in July suggested that it is now seeking up to $5.75 billion for distressed investments and corporate buyouts.

 

 

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