ICAP, the world's leading interdealer broker and provider of post trade risk and information services, announces that it has sold a 12% stake in Traiana, Inc. ('Traiana') to seven of Traiana's leading customers, giving the business a valuation of $300 million.
Collectively, the Investors also have an opportunity under certain conditions to acquire in the future an additional 20% equity in Traiana for a price of up to $82.5m.
Traiana provides global banks, broker/dealers, buy side firms and trading platforms with services to automate post-trade processing and risk management of financial transactions in listed and over-the-counter trading markets.
The banks that invested in Traiana are: BofA Merrill Lynch, Barclays, Citi, Deutsche Bank, JP Morgan, Nomura, and the Royal Bank of Scotland.
As part of the agreement, Traiana created a new board of directors, led by Traiana founder and Executive Chairman, Gil Mandelzis. The board includes Traiana's CEO, Andy Coyne, and a representative from each of the investing banks. ICAP will continue to consolidate Traiana as a subsidiary.
Michael Spencer, ICAP Group CEO, said:'ICAP recognised the strategic value of Traiana early, invested in its growth and it has now become a central infrastructure company within the global FX industry. We are extremely pleased to have many of ICAP's top customers partner with us in Traiana and look forward to working with them to develop several new Traiana initiatives'.
Gil Mandelzis, Executive Chairman of Traiana, said: 'This investment marks another important milestone in solidifying our partnership with the leading players in the industry. It creates a platform for Traiana to continue to innovate and transform the markets we serve and make global markets more robust for our customers and their clients. We are thrilled the banks have invested in Traiana and, together, we will expand our offering further'.
'Traiana is an industry leader, bringing innovation to the markets it serves and is an increasingly important firm for us and our clients', said Thomas Gillie, co-head of G10 Foreign Exchange Trading, BofA Merrill Lynch, 'We are excited to support the Company's growth and the next stage of its development'.
'Traiana plays a pivotal role in the global FX industry as a central infrastructure company and we are delighted to be part of this strategic investment. We look forward to solidifying our relationship with Traiana and working with them to accelerate the growth of the company', said Mike Bagguley, Head of FX and Commodities at Barclays.
'As Traiana's first customer more than 12 years ago, we have seen firsthand the value its technology brings to the markets it serves. Deutsche Bank is delighted to be investing in Traiana's continued growth', said Kevin Rodgers, Global Head of Foreign Exchange at Deutsche Bank.
'Traiana's market leading technology assisted the FX industry in lowering the cost of processing transactions, which helped to make the US$4T of daily volumes that you see today a reality. With its focus now expanding to a broad range of over-the-counter and listed markets, we expect the industry to gain further from their experience', said Troy Rohrbaugh, global head of FX & Rates Trading at JP Morgan.
'Traiana is firmly established as a market leader in post-trade processing. Through this investment, Nomura is excited to partner with the company during its next phase of growth', said Chris DeWinter, Managing Director, Nomura.
'Traiana has become a key partner for our bank, with its market-leading capability to address industry wide issues, across sell-side, buy-side and ECNs on a neutral basis. We're excited to participate in its continued growth', said Tim Carrington, Global Head of FX, Markets & International Banking, The Royal Bank of Scotland.