Dubai’s DIFC Investments has agreed to acquire SmartStream Technologies Group from TA Associates for $413 million, it has been revealed.

UK-based SmartStream, which specialises in software for financial services firms, withdrew an anticipated $208 million IPO last month, citing weak market conditions. SmartStream would help the DIFC build a platform for data management and trade processing, DIFC Investments said in a statement.

“This acquisition enhances the DIFC’s role in the global financial services industry and further establishes the DIFC as a global gateway for international financial business,” said DIFC Investments Chairman Dr Omar Bin Sulaiman.

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.

“We are pleased to acquire SmartStream, a recognised global leader in the development of transaction lifecycle management software used in the back and middle office of many of the world’s 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 world’s largest IT market, financial services technology,” said DIFC Investments Managing Director Bisher Barazi.

“We 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,” said TA Associates Managing Director Ajit Nedungadi.

“SmartStream 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,” said SmartStream CEO Ken Archer.

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. – TradeArabia News Service