Investment Summary

Spectrum Equity and TA Associates Invest In BATS Global Markets

On August 14, 2013, private equity firms Spectrum Equity and TA Associates invested in financial services company BATS Global Markets

Investment Highlights
  • This is Spectrum Equity’s 4th and TA Associates’ 31st transaction in the Financial Services sector.
  • This is Spectrum Equity’s 42nd and TA Associates’ 171st transaction in the United States.
  • This is Spectrum Equity’s 2nd and TA Associates’ 1st transaction in Kansas.
Investment Fate
  • BATS Global Markets was sold to a publicly-traded strategic buyer in 2017 for 3.4B USD.

Investment Summary

Date 2013-08-14
Target BATS Global Markets
Sector Financial Services
Investor(s) Spectrum Equity
TA Associates
Deal Type Stake Purchase

Target

BATS Global Markets

Lenexa, Kansas, United States
BATS Global Markets, Inc. (BATS) is a operator of securities markets, serving the needs of customers in the U.S. and European equities and listings industries, as well as the U.S. options market. The company recently merged with Direct Edge Holdings LLC and is focused on Making Markets Better for traders, investors and issuers.

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Investor(S) 2

Investor

Spectrum Equity

Boston, Massachusetts, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1994
PE ASSETS 8.2B USD
Size Mega
Type Sector Focused
DESCRIPTION

Spectrum Equity Management L.P. is a private equity investor focused on service businesses. Spectrum specifically targets established businesses in the media, communications, IT, information, and business services industries. The Firm looks to commit $25 to $150 million of equity capital per transaction and focuses on opportunities throughout North America and Western Europe. Prospective transaction situations include leveraged buyouts, recapitalizations, acquisition financings, and secondary purchases. Spectrum Equity Investors was formed in 1994 and has offices in Boston, Massachusetts and Menlo Park, California.


DEAL STATS #
Overall 48 of 103
Sector: Financial Services M&A 4 of 5
Type: Stake Purchase M&A Deals 6 of 7
State: Kansas M&A 2 of 2
Country: United States M&A 42 of 90
Year: 2013 M&A 5 of 5
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2013-06-01 iSelect

Cheltenham, Australia

iSelect Limited is the leading provider of product comparison for Australian consumers of private health insurance. Founded in 2000, the company has since expanded into additional insurance lines including life, auto and travel, as well as financial products including home loans. By partnering with many of Australia's leading insurers and banks, iSelect provides consumers with a broad set of options, advice, and increased flexibility, both online and over the phone.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2013-11-21 Passport Health Communications

Franklin, Tennessee, United States

Passport Health Communications, Inc. (Formerly InterMed LLC) provides a comprehensive suite of administrative, clinical and financial solutions to improve the efficiency and accuracy of the revenue cycle process for more than 5,300 hospitals, physician practices and other healthcare providers.

Sell $850M
Investor

TA Associates

Boston, Massachusetts, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1968
PE ASSETS 65.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

TA Associates is a private equity firm that targets investments in middle-market and large companies around the world. TA will consider control or minority investments in profitable companies and looks to commit between $70 and $500 million per transaction. TA proactively reaches out to companies directly in sourcing potential investment opportunities. Prospective businesses are generally valued between $100 million and $3 billion. Areas of interest include technology, software, communications, financial services, healthcare, business services, semiconductors/electronics, and consumer products/services. In addition to investing equity capital, TA also makes subordinated debt investments. TA's geographic preference is North America, Asia/Pacific, and Europe. TA Associates was formed in 1968 and is based in Boston, Massachusetts.


DEAL STATS #
Overall 204 of 374
Sector: Financial Services M&A 31 of 51
Type: Stake Purchase M&A Deals 19 of 39
State: Kansas M&A 1 of 2
Country: United States M&A 171 of 270
Year: 2013 M&A 8 of 13
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2013-08-12 eSecLending

Boston, Massachusetts, United States

eSecLending is an independent securities lending agent providing customized securities lending, auction and collateral management solutions for institutional investors worldwide. eSecLending was founded in 2000 and is based in Boston, Massachusetts.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2013-09-11 Cypress Pharmaceutical

Madison, Mississippi, United States

Cypress Pharmaceutical is a rapidly growing specialty pharmaceutical company that develops, markets and distributes generic prescription, over-the-counter and specialty branded pharmaceutical products. Cypress provides generic and branded products to the leading national pharmaceutical wholesalers, chain drug stores, distributors and other retail merchandisers. Through its specialty branded business, Hawthorn Pharmaceuticals, the company also provides internally developed pharmaceutical products marketed directly to physician specialists.

Sell -