Private equity firm Carlyle CYL.UL said on Monday it struck a deal to buy software developer OpenLink Financial from TA Associates, also a private equity firm.
Carlyle didn’t disclose terms of the deal, but said the investment is being made from its $13.7 billion U.S. buyout fund, called Carlyle Partners V.
Private equity deals have been picking up in the past few months as the credit markets show signs of improvement.
The OpenLink deal is made up of a combination of debt and equity, with the largest proportion being equity.
“The company is a growing company; our equity investment is substantial into the company and represents the majority of the capital structure,” Cam Dyer, principal in Carlyle’s U.S. Technology Buyouts group, told Reuters. “So we weren’t seeking to maximize leverage here, but we did take on some debt as part of the transaction.”
Deal financing was arranged by Bank of America Securities and Credit Suisse Securities.
Carlyle, one of the world’s largest private equity firms, has investments in technology companies such as software firm Open Solutions and cash handling technology Talaris.
Dyer said that OpenLink, which develops software for the commodity, energy and financial services industries, operates in a “very attractive growing market.”
“OpenLink itself is two times larger than their nearest competitor in their core market, and the management team, which has run the company for an average of 10-11 years, is reinvesting a substantial portion of their equity alongside us,” Dyer said.
TA invested in OpenLink in 2006, when it sponsored a $100 million recapitalization of the firm.