Clients of Calypso range from central banks to insurers.
Thoma Bravo, the technology-focused private-equity firm, has agreed to buy Calypso Technology for $3.75 billion, according to two people familiar with the situation.
Thoma Bravo said Monday it was acquiring Calypso from its current owners, the European buyout shop Bridgepoint and the private-equity firm Summit Partners. It didn’t disclose the financial terms.
The deal means that Calypso is selling for nearly twice the amount it was seeking. The San Francisco fintech generated up to $100 million in earnings before interest, taxes, depreciation, and amortization, or Ebitda, in fiscal 2020, and was expected to sell for 20 times that, Barron’s has reported. Instead, Thoma Bravo is paying 37 times Calypso’s $100 million in Ebitda.
The sale is expected to close in the second quarter.
Founded in 1997, Calypso provides software that supports trading, risk management, collateral, processing, accounting, and compliance for more than 180 financial institutions. Clients range from central banks to insurers. Calypso has more than 35,000 users and employs more than 800 people.
“We are thrilled to begin the next chapter of our story alongside Thoma Bravo and are grateful to Bridgepoint and Summit Partners for their support and partnership,” said Didier Bouillard, Calypso’s CEO, in a statement. The deal highlights the value Calypso creates and reflects the staff’s hard work and strong results, he said.
“For more than a decade, we have admired Calypso’s position as a leader in the global capital markets software space with a highly differentiated and modern, integrated front-to-back technology platform across a wide range of asset classes,” said Holden Spaht, a Thoma Bravo managing partner, in the statement.
The sale provides an exit for Bridgepoint and Summit Partners, a Boston private-equity firm, which acquired Calypso in 2016. The firms put Calypso up for sale in February, Barron’s has said.
The Calypso acquisition comes one day after
Thoma Bravo Advantage
(ticker: TBA), the blank-check affiliate of the PE firm, said it would buy ironSource in a deal that values the Israeli company at $11.1 billion
IronSource, an advertising-technology firm from Tel Aviv, is expected to receive $2.3 billion in cash from the sale, a statement said. This includes a $1.3 billion private investment in public equity, or PIPE, that comes with a $300 million investment from Thoma Bravo. Other PIPE investors include Tiger Global Management, Morgan Stanley (MS), Nuveen, Hedosophia, Wellington Management, The Baupost Group, and Fidelity Investments Canada.
Thoma Bravo Advantage, which went public in January, is providing $1 billion in cash that is currently held in a trust account.
Anil Rachwani of Evercore and Alex Yavorsky of Jefferies provided financial advice to Calypso, Bridgepoint, and Summit Partners. Latham & Watkins served as their legal advisor. Kirkland & Ellis acted as the attorney for Thoma Bravo.
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