09 November 2009 News

 

The Carlyle Group acquires OpenLink

Carlyle has agreed to purchase OpenLink Financial from TA Associates. The terms of the transaction were not disclosed. The transaction is expected to close in the fourth quarter.

Founded in 1992, OpenLink provides cross-asset trading, risk management, and related portfolio management software. Despite significant success in the commodities, bonds and energy spaces it has struggled to expand its systems' use in other asset classes. OpenLink's blue chip client base includes twelve of the top twenty-five largest commodity and energy companies by market capitalisation, eight of the largest financial institutions and eleven of the largest central banks including the Bank of International Settlements, as well as major hedge funds and public utilities.

Headquartered on Long Island, New York, and with offices in New York, Houston, London, Berlin, Vienna, São Paulo, Sydney, and Singapore, OpenLink has more than 785 employees worldwide.

Kevin Hesselbirg, chief executive of OpenLink, said: "TA Associates has played a key role in the development of OpenLink, helping us to grow organically and evolve from our entrepreneurial roots. In this next phase of our journey, Carlyle's technology expertise and financial know-how will serve us well, particularly as we expand internationally and through acquisitions. We see a bright future for the continued growth of OpenLink, driven by the persistent expansion of demand in the industries we serve, as we deliver solutions to the world's leading energy, commodity and financial services companies who are our clients."

Cam Dyer, principal in Carlyle's US Technology Buyouts group, added: "We are pleased to back chief executive Kevin Hesselbirg and his talented management team, who have an outstanding track record and a clear strategy for long-term growth. We look forward to supporting OpenLink's growth through Carlyle's global resources and industry expertise, and we expect that OpenLink's valued clients and talented employees will benefit from this growth as OpenLink continues to increase the breadth and depth of its industry leading software solutions."

Acquisition financing has been arranged by Bank of America Securities and Credit Suisse Securities. OpenLink Financial was advised by Morrison & Foerster and BofA Merrill Lynch. The Carlyle Group was advised by Alston & Bird and Credit Suisse. TA Associates was advised by Goodwin Procter.

Equity capital for this transaction will come from Carlyle Partners V, Carlyle's flagship $13.7 billion US buyout fund, management, and founder and chairman Coleman Fung.