DIFC Investments will acquire SmartStream from TA Associates, SmartStream management and employees in an all cash deal, which values the company at approximately Â£200 million. The management team remains highly committed to the business and will be incentivised to continue SmartStreamâs development as a leader in the industry.
His Excellency Dr Omar Bin Sulaiman, Chairman of DIFC Investments, said: âThis acquisition enhances the DIFCâs role in the global financial services industry and further establishes the DIFC as a global gateway for international financial businessâ.
DIFC Investments aims to create a new generation of hosted information and trade processing services, and its intention is that SmartStream will be at the heart of the secure, scaleable trade processing and data management platform it is building.
Commenting on the acquisition, Bisher Barazi, Managing Director of DIFC Investments, said: âWe are pleased to acquire SmartStream, a recognized global leader in the development of transaction lifecycle management software used in the back and middle office of many of the worldâs leading banks, asset managers, hedge funds and money managers. It has excellent products, a committed management team and exciting plans for future development in what is the worldâs largest IT market, financial services technology.â
Ajit Nedungadi, Managing Director of TA Associates said: âWe are delighted to reach this agreement with DIFC Investments. This has proven to be a very successful relationship for SmartStream and TA Associates, and we thank the management team for their hard work and support during this period. The DIFC is an exciting strategic platform that will support continued growth and investment in SmartStream.â
Ken Archer, CEO of SmartStream, said: âSmartStream has established itself as a global leader in transaction lifecycle management. As we enter the next phase of our development, we are delighted to have the backing and support of DIFC Investments, which has an obvious interest in and a deep understanding of the global financial services industry in which we operate. For our customers, partners and employees it is very much business as usual. Being at the heart of this massive industry transformation that DIFC Investments are driving will undoubtedly create exciting opportunities for SmartStream to accelerate our growth over the medium and long term.â
The transaction is expected to close in approximately one month from now.
DIFC was advised on the transaction by Deutsche Bank AG, while Close Brothers advised SmartStream and TA Associates.