The transaction has been made following SmartStreamâs recent record results. SmartStreamâs dramatic growth and expanding market leadership has positioned the company to move to the next stage of its corporate development with a new partner. TA Associatesâ investment provides the support and market skills to ensure the success of this strategic plan, including a potential floatation.
âWe are delighted to be partnering with TA Associates. This is a critical step in executing our growth acceleration strategy and moving to the next stage of the firmâs development,â said Ron Mackintosh, Chairman, SmartStream. âThe record results for financial year ending June 2006 are testament to SmartStreamâs success and continued ability to out compete the market with our highly attractive suite of TLM products and solutions. With TA Associatesâ substantial experience in growth software companies, we are perfectly positioned to achieve our strategic plan.â
Commenting on the investment led from TAâs London office, Ajit Nedungadi, a Principal at TA Associates and Director of TA Associates Ltd., said, âSmartStream is a highly successful, profitable and growing business making it an ideal fit for TAâs growth private equity model. We believe this is a great opportunity to invest in a global brand leader in a dynamic market with a talented group of employees to secure the next stage of its development.â
âWe are confident that this partnership will prove very beneficial to SmartStreamâs clients and employees; ensuring a successful, innovative software company remains a self sufficient force in the industry,â said Jonathan Meeks, a Principal at TA Associates. âIn an environment facing increasing regulatory pressure and growing volumes of electronic trading, SmartStream offers financial institutions compelling solutions to control their risk, cost and compliance issues.â
Founded in 1968, TA Associates is one of the worldâs leading private equity firms and has invested over $1 billion in financial technology companies. Some of TAâs prior investments in the financial technology and financial services sectors include Affiliated Managers Group, AIM Management Group (AMVESCAP), Datek Online Holdings (Ameritrade Holding Corporation), eSecLending, GlobeOp Financial Services, The IntercontinentalExchange, ION Trading Group, The Island ECN (Instinet Group Incorporated), Lava Trading, Numeric Investors, OpenLink Financial and Thomson Advisory Group (PIMCO).
With TA Associatesâ ownership, there will be a change in Board members; TA Associatesâ Ajit Nedungadi and Jonathan Meeks will join the Board and Lord Blackwell, Mark Austen and Martin Brown will be stepping down. Martin Brown will be transitioning out of his current role as CEO of SmartStream Technologies to pursue other business interests. In the interim, he will remain as CEO with the full support of the Board and assist in selecting a successor.
The Royal Bank of Scotland's Corporate & Structured Finance team provided senior debt for the investment. Goodwin Procter LLP and Travers Smith served as legal counsel for TA Associates. Macfarlanes provided legal counsel to SmartStream Technologies and Deutsche Bank acted as sole financial adviser to 3i in this transaction.