Forefront Communications

The Deal: Inbound Interest Leads to Sale of GTCR’s Dash

Forefront

Mark Dowd

Mark Dowd

GTCR LLC is selling Dash Financial Technologies to Flexpoint Ford LLC and management following inbound interest for the portfolio company.

Terms of the deal were not disclosed in the Wednesday, March 7, announcement.

“We received a bunch of inbound interest in the company over the last several months that led to the deal with Flexpoint,” said Dean Mihas, a managing director at Chicago?based GTCR, in a phone interview on Wednesday.

GTCR did not conduct a formal sale process for Dash, Mihas said. He declined to disclose the return on GTCR’s investment.

Besides Mihas, the GTCR deal team included managing director Collin Roche and vice president KJ McConnell.

New York?based Dash provides multi?asset trading technology and execution services provider to the institutional traders. The company is the result of a merger, completed in March of last year, between Dash Financial and ConvergEx Group LLC’s options trading and technology business, known as LiquidPoint.

GTCR, Bank of New York Mellon Corp. and others sold Convergex to Cowen Inc. for $100.7 million in a transaction completed in June of last year.

GTCR linked up with Bank of New York Co. in 2006 to form BNY ConvergEx Group LLC, an agency broker targeting hedge funds, pension plans and large institutional investors. As part of that transaction, BNY ConvergEx acquired Eze Castle Software Inc., a provider of trade order management services. Bank of New York itself merged with Mellon Financial Corp. in a transaction completed in 2007, forming Bank of New York Mellon Corp.

ConvergEx’s acquisitions include LiquidPoint LLC in 2007.

In 2013, ConvergEx sold Eze Castle Software and RealTick LLC to TPG Capital LP.

The sale of Dash is expected to close in the second quarter.

“We have known the Dash management team for some time and look forward to helping them to build upon the firm’s significant success to date by both accelerating current organic growth and by pursuing potential adjacent acquisitions, similar to the highly successful LiquidPoint transaction,” said Daniel Edelman, principal at Flexpoint Ford, in a statement.

Edelman will join Dash’s board along with Flexpoint managing director Steven Begleiter, who will serve as Dash’s non?executive chairman.

Flexpoint Ford teamed up with Dash co?founders Peter Maragos and David Karat on the transaction. Maragos will continue to serve as CEO and director.

Dash did not use an investment bank for the transaction, according to a company spokesperson.

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