Information on the Target

Thoma Bravo has reached an agreement to acquire a stake in Trading Technologies, a prominent provider of Software as a Service (SaaS) platforms specialized in derivatives trading. This acquisition is valued at over $1 billion and is anticipated to finalize in the fourth quarter of 2025, pending regulatory approval. 7RIDGE, which previously acquired Trading Technologies in 2021, will continue to hold a minority stake in the company. This earlier acquisition was backed by limited partners such as Cboe and Singapore Exchange.

Headquartered in Chicago, Trading Technologies delivers advanced trading infrastructure and analytics software to global futures commission merchants, brokers, and buy-side institutions. Since being acquired by 7RIDGE, the company has undergone a significant transformation, positioning itself for sustained growth in the competitive trading technology landscape.

Industry Overview

The derivatives trading industry is experiencing rapid evolution, driven by technological advancements and increasing market complexity. In particular, the demand for high-performance trading platforms has surged, as traders seek tools that enhance speed and reliability. Companies in this sector are pivoting toward SaaS models, allowing for greater flexibility and scalability, which aligns with current market needs.

In the United States, the derivatives market continues to see expanding participation from various institutions, including hedge funds and proprietary trading firms. As regulatory environments evolve, companies are increasingly required to adopt robust compliance and risk management solutions, further bolstering the demand for sophisticated trading infrastructure.

With the rise of algorithmic and high-frequency trading, the need for advanced analytics and real-time data has become critical. As a result, firms that can provide next-generation solutions are well-positioned to capture market share in this lucrative space. Trading Technologies is strategically placed to address these challenges through its innovative platform.

The Rationale Behind the Deal

This investment aligns with Thoma Bravo's strategy of focusing on high-growth, mission-critical SaaS platforms within the financial infrastructure and enterprise software sectors. The firm believes that Trading Technologies, with its modern, industry-leading platform, is poised for significant growth due to its loyal customer base and the increasing market demand for its innovative solutions.

A.J. Rohde, Senior Partner at Thoma Bravo, expressed confidence that Trading Technologies is entering a phase of meaningful growth, driven by its evolving capabilities and market opportunities. The current leadership, under CEO Justin Llewellyn-Jones, is expected to further enhance the company's position and drive its next stage of growth.

Information About the Investor

Thoma Bravo is a leading private equity firm with a keen focus on software and technology-enabled services. The firm has a long-standing track record of successful investments in high-growth sectors, leveraging its deep industry expertise to unlock value within its portfolio companies. Thoma Bravo's commitment to operational excellence and strategic growth has made it a key player in the financial technology landscape.

With a history of transforming businesses through tailored resources and strategic guidance, Thoma Bravo is well-equipped to support Trading Technologies as it navigates its growth journey. The firm's investment philosophy stresses the importance of partnering with strong management teams, making the prospect for continued growth for Trading Technologies even more promising.

View of Dealert

From an expert perspective, this acquisition appears to be a strategic move for Thoma Bravo, considering the growing demand for advanced trading platforms in the derivatives market. Trading Technologies has demonstrated robust revenue growth and is well-positioned to capitalize on the increasing needs of traders and institutions alike. The anticipated revenue growth from approximately $170 million in 2024 to an estimated $224 million in 2025 underscores the company's strong market position and prospects.

The backing of Thoma Bravo, a respected name in private equity, combined with continued leadership from CEO Justin Llewellyn-Jones, creates a solid foundation for Trading Technologies' future endeavors. This alliance is likely to enhance the company's capabilities and market reach, allowing it to expand its customer base and strengthen its offerings.

Overall, this investment presents a valuable opportunity for Thoma Bravo to leverage Trading Technologies' innovative solutions in a rapidly evolving market landscape. If executed effectively, it could significantly enhance investor returns while further solidifying Trading Technologies' position as a leader in trading technology.

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