The acquisition will extend TT’s reach into clearing and middle-office technologies.
Trading Technologies International (TT) intends to expand its reach into clearing and other middle-office technologies and services via its acquisition of ATEO SAS, a provider of post-trade solutions for listed derivatives, officials say.
TT is a software-as-a-service (SaaS) technology platform provider to global capital markets. The financial terms of the transaction, which closed on Feb. 29, were not disclosed by TT officials.
“The two firms entered into a strategic partnership in late 2022 to deliver a fully integrated, comprehensive post-trade allocation service for sell-side banks, brokers and futures commission merchants (FCMs). The acquisition brings ATEO’s full line of middle-office solutions into the TT infrastructure,” according to TT.
“We’ve enjoyed an outstanding working relationship with the ATEO team since we embarked on our partnership in 2022, and we came to the conclusion that we can create an even stronger value proposition and end-to-end offering by bringing the entire firm and all software modules into the TT family of offerings,” says Keith Todd, CEO of TT, in a prepared statement.
“We now have the ability to scale significantly as part of the TT team and infrastructure, supporting more clients of every size, regardless of the scope of their needs,” says Laurent Courbin, founder and CEO of ATEO, in a statement.
The acquisition will bring together the existing clients from both companies, according to David Romeo, managing director of ATEO. “Giving our clients the ability to manage their trading activities from pre-trade risk to post-trade allocation and clearing through TT’s multi-asset platform will provide a meaningful competitive advantage,” Romeo says via a statement.
ATEO will operate as a managed service hosted via TT’s data centers.
ATEO’s products are: TEO Derivatives, an order management system (OMS) dedicated to brokerage environments and used by interdealer and executing brokers, “including the vast majority of brokers in London,” according to officials.
ATEO also offers the LISA Clearing Engine, a trade matching and clearing solution that helps firms “process business across all clearing houses globally and offer tailored services to their customers,” officials say.
The company also offers UGO, “a set of gateways and standardized clearing application programming interfaces (APIs)” offering firms the ability “to develop or feed in-house solutions through scalable trade feed standardization and high throughput for all clearing activities,” officials add.
David Solo, a board member for TT, oversaw the acquisition negotiation on behalf of TT, and Fieldfisher acted as the firm’s legal advisor, officials say.
NINE58 Advisors served as financial advisor and Dentons as legal advisor to ATEO.
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