Cathay Capital, Bpifrance weigh NeoXam sale

The French financial sponsors are working with an adviser to gauge interest in the Paris-headquartered developer of buyside and sellside software, according to the sources. A formal sale process is expected to kick off imminently, they added.

Established in 2014, NeoXam provides asset managers, institutional investors, banks and asset servicers with tools to assist with everything from algorithm modelling and compliance control to data management and back office support.

NeoXam, which comprises former SunGard assets GP3 and Decalog, has grown considerably under the ownership of Cathay and Bpifrance, three of the sources said.

The business generated around EUR 15m in EBITDA on roughly EUR 70m in sales when it was acquired from BlackFin Capital Partners for an undisclosed sum in 2018, two of them added.

A sale of NeoXam would come at a buoyant moment for financial software and information offerings, with Danish investment management solutions provider SimCorp among players to have piqued the interest of private equity firms sounding out potential take-private transactions in recent months, Mergermarket recently reported.

The EUR 3.1bn (USD 3.75bn), or 37.5x EBITDA, sale of capital market software developer Calypso Technology to Thoma Bravo and the EUR 2.1bn (USD 2.5bn), or 24.7x EBITDA, buyout of Itiviti by Broadridge Financial Solutions last March are two of a number of transactions said to have spurred interest among investors in a niche but increasingly specialized sector.

A representative for Cathay Capital declined to comment. Bpifrance and NeoXam did not respond to requests for comment.

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