People familiar with the matter said HG Capital is weighing a sale of SmartTrade, a French software provider for financial markets. Such a deal would be quite sizeable for the HG Capital fund that initially acquired a controlling interest in the tech firm back in 2017.
SmartTrade is a leading provider of award-winning software solutions that make it possible to trade many asset classes. Over the last several years, with HG Capital's exceptionally capable guidance, SmartTrade has grown and innovated. Indeed, it is now positioned as one of the more key players in the financial software industry, with considerable market share and a strong client base of some of the largest financial institutions in the world.
Its sale is still at the early stages of consideration, with HG Capital weighing its options. The private equity firm is understood to have appointed financial advisers to evaluate strategic options- understood to include a potential sale of the business. No final decision has been taken, but sources close to the matter said a sale could generate considerable interest from both private equity and strategic buyers.
A sale of SmartTrade would also come at a time when consolidation is sweeping the financial-technology industry, as companies try to boost their capabilities and expand their reach worldwide through strategic purchases. Indeed, given that backdrop, analysts say SmartTrade's premier technology and market positioning could fetch a premium valuation, which, in turn, would make a sale all the more worthwhile for HG Capital.
Financial performance metrics demonstrate that SmartTrade has emerged as a lucrative investment by HG Capital. The company reportedly reached double-digit revenue growth over the last few years, thanks to the growing demand for its cloud-based trading solutions. This strong financial performance might prove to be a deal-maker for the potential buyers who look for stable yet high-growth investment opportunities in the space of FinTech.
With neither HG Capital nor SmartTrade willing to comment on the sale, sources close to the process say that the talks reflect HG's continuing effort to extract the best possible value out of its portfolio investments. This could be further development the observers are keenly watching, particularly in the context of the ever-dynamic, fast-changing financial technology landscape.
With developments still on, stakeholders and enthusiasts are called upon to follow post developments regarding the sale of SmartTrade. This deal is very likely to have a material effect on the fintech space, assuming it goes through, considering SmartTrade has a very strong position in the market and is technologically advanced.
This should be closely followed for more information since it does indeed become available on this critical juncture of the FINTECH platform.
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Author: Emily Collins
