Kohlberg Kravis Roberts & Co. is buying financial data and software company Ipreo LLC from private investment firm Veronis Suhler Stevenson. The terms of the deal were not disclosed, but the transaction is expected to close in the third quarter of this year.
“Ipreo is a sophisticated capital markets and corporate analytics firm managed and staffed by many of the most knowledgeable, creative and client-focused people in the industry,” said Thomas Uger, director of New-York based KKR, adding that he sees “great potential for growth.”
Ipreo provides market intelligence, deal execution platforms, and investor communication tools to investment banks and corporations. It is the only provider of new issuance software solutions across the equity, fixed-income, and municipal markets, including book-building systems, conference management platforms, and electronic document delivery.
Ipreo started out as an information platform for Veronis Suhler Stevenson that grew from $5 million in annual revenue in 2004 to $130 million today. Ipreo was formed in 2006 through a merger and recapitalization of VSS-controlled companies with i-Deal LLC. It then continued to grow organically and through numerous acquisitions. The firm now has more than 600 employees in the U.S., Europe and Asia.
“The assets and products we were able to integrate into this focused information-services provider has positioned the company to play a leading role in the development and evolution of debt and equity securities issuance and investor intelligence on a global basis,” said Scott Troeller, a partner at VSS.
Ipreo chief executive Scott Ganeles said VSS’ support and financial information experience was critical to Ipreo’s growth. “By pursuing strategic add-ons and introducing top-tier products and services, including during the 2008-09 economic downturn, we have been able to grow every year and solidly position Ipreo as a top competitor.”
Ganeles added that he expects Ipreo to be able to continue to grow under KKR’s ownership. “This is a new chapter in our history, and it is an endorsement of our success to date and a validation of our employees’ commitment to ensuring our clients have the best tools, analysis, and insights to enable them to achieve their capital raising goals,” he said.
A spokeswoman for KKR declined to comment on any management or business changes that may be planned for Ipreo.
KKR is a publicly traded investment firm with $61 billion under management as of March. The firm said it seeks to create value by bringing operational expertise to its portfolio companies and through active oversight and monitoring of its investments.
