Capitolis to buy eSecLending for $200M in fourth deal in five years
What's the deal? Fintech unicorn Capitolis has agreed to acquire US-based eSecLendingDealroom has a profile for this one. Try Dealroom → for $200 million in cash. The target is an independent securities lending firm that helps large asset owners — pension funds, insurers, and asset managers — lend securities to major global banks.
Who's involved? Capitolis is buying the 26-year-old Boston firm from Parthenon CapitalDealroom has a profile for this one. Try Dealroom → and its management team. As part of the deal, Parthenon will also invest in Capitolis. eSecLending's 120 employees will join Capitolis's 200-strong workforce.
What's the endgame? The acquisition adds securities lending to Capitolis's existing financial resource management platform. The combined business will offer banks and institutional investors capabilities across securities lending, repo, and financing markets, while opening access to eSecLending's network of institutional asset owners.
Why now? "We began discussing the acquisition a year ago, and it has now been finalized. This is our fourth acquisition," chief executive officer and founder Gil Mandelzis told Calcalist. He said achieving "massive growth" in the industry is harder than dominating a niche.
In their words: "This acquisition transforms Capitolis and marks a significant step in the company's evolution," Mandelzis said. Craig Starble, eSecLending's chief executive officer, said joining Capitolis "enables us to expand the solutions we bring to market and deliver even greater value to our clients."
The transaction is subject to customary closing conditions, including regulatory approvals and antitrust clearance. eSecLending Europe LimitedDealroom has a profile for this one. Try Dealroom → is not included in the deal and will continue to provide services to eSecLending. Capitolis has raised roughly $300 million to date.
The signal: This marks Capitolis's fourth strategic acquisition in five years, a sign the company is buying rather than building to embed itself deeper into banks' and institutional investors' core operations.
Read more: calcalistech.com
Image credit: David C. Foster
