FlexTrade Systems, Inc. announced today that it is acquiring ColorPalette Order Management System from LavaFlow Inc., a subsidiary of Citigroup (NYSE: âCâ).
The transaction combines ColorPalette, a leading US equity hosted OMS product, with FlexTrade, the world renowned, multi-asset trading technology firm with operations in North America, Europe and Asia.
"FlexTrade has been providing state-of-the-art, broker-neutral trading technology to sell side institutions and asset managers for more than 14 years,â said Vijay Kedia, President and CEO of FlexTrade Systems. âSo we are excited to work with ColorPalette OMS customers to support their existing business as well as deliver new capabilities."
As part of the acquisition, FlexTrade will make a substantial investment in the ColorPalette platform and infrastructure, and integrate its existing products and services without requiring customers to change their core platform.
Greg Ludvik, a 10-year Citigroup veteran, will join FlexTrade to run the ColorPalette OMS and business development. FlexTrade is also retaining ColorPaletteâs existing development, product and support teams. âOne of our overriding goals during this process is to make sure the transition is seamless for ColorPalette customers,â continued Kedia.
âFlexTrade is an ideal match for the ColorPalette product," said John Procopion, Head of Transaction Services, Lava Technology. âWe believe this represents an exceptional opportunity for our customers and a significant enhancement to competition in the OMS space.â
ColorPalette OMS customers will continue to have access to the industry leading ColorBook smart order router, which provides a complete suite of market access products. Citi will also provide access to ColorData market data, and algorithmic trading products.
Dan Keegan, Global Co-Head of Citiâs Electronic Markets, said âI am excited about this transaction, which will allow FlexTrade to service our customers with industry leading OMS and EMS capabilities. Citi will continue to focus on the exceptional execution capabilities offered by the LavaFlow ECN, ColorBook smart order router, premier Citi Match dark pool, options and equities market making, and Citiâs algorithmic product suite.â
Terms of the acquisition were not disclosed. The transaction is expected to close in the fourth quarter of 2010.