LDC exits Avelo in £210m deal
PRIVATE equity firm LDC has sold Warwick-headquartered technology business Avelo to an Australian firm for £210m.
Avelo, a provider of integrated technology solutions, software and consultancy to the UK financial services industry, has been bought by Australian financial services technology specialist, IRESS, which has a global client base for its capital markets and wealth management systems.
LDC backed the management team of 1st – The Exchange (renamed Avelo) in August 2009, as part of a £115m transaction, with LDC investing £42m to purchase a controlling stake in the company.
The private equity firm backed a management strategy to extend the reach of the products and services it delivers to advisers’ desktops and build the business, both through organic investment and bolt-on acquisitions.
In 2010 LDC provided follow on funding for Avelo’s acquisition of N4 Solutions, the provider of distribution and fulfilment software for the financial services industry.
LDC also provided funding in 2011 for the subsequent purchase of Screen Business, which provides bespoke website design to help intermediaries interact with their clients online.
And last year LDC backed further expansion with Avelo’s acquisition of TrigoldCrystal, a UK supplier of technology solutions to mortgage distributors.
Avelo now has approximately 32,000 registered users, has processed 185m client illustrations over its online information and transaction services since 2008 and works with 1,600 adviser firms.
IRESS produces solutions for financial market and wealth management participants. Its two core product streams, IRESS and XPLAN, comprise an equity information and trading platform and an extensive suite of financial planning and associated tools.
Speaking about being acquired by IRESS, Simon Badley, CEO of Avelo, said: “Becoming part of the IRESS group at this stage in Avelo’s development, with our shared financial services pedigree, will provide huge scope for new and exciting growth opportunities.”
Daniel Sasaki, managing director of LDC’s London investment team, said: “It has been a pleasure to witness Avelo’s transformation over the past four years into a world-class company that offers market-leading technology services to the financial services industry.”
Arma Partners advised Avelo on the transaction.
