Dash Financial Technologies, a trading technology provider for institutional entities, is set to acquire eRoom Securities, LLC, a Chicago-based provider of prime brokerage solutions, the firm announced this Thursday.
According to a statement released by Dash Financial, it has signed a definitive agreement for the acquisition, with the transaction expected to close in the first quarter of 2019. Once acquired, eRoom Securities will be rebranded as Dash Prime, to bring technology and services to the professional trading community.
Currently, eRoom is a provider of brokerage services ranging from multi-asset trading technology, agency execution, risk management, reporting and clearing services. The company offers these services to institutions, hedge funds and professional investors. Post-acquisition, eRoom will continue to be led by its current management team, which is led by Collin Carrico and Ben Schwartz.
Commenting on the transaction, Peter Maragos, the CEO and Co-Founder of Dash Financial Technologies said: “The professional trading community requires the kind of high performance, customizable technology solutions that lend themselves perfectly to Dash’s transparent, innovative and technology-driven approach.
“Collin and Ben have built a tremendous business with a loyal client following – we look forward to partnering with their talented team to create Dash Prime and expanding the offering to deliver it to a wider segment of the professional trading community.”
Dash Financial and eRoom acquisition subject to regulatory approval
The deal is now subject to customary closing conditions, such as receiving regulatory approvals. For the transaction, Sandler O’Neill + Partners, L.P. was the financial advisor for eRoom and Paul Hastings LLP served as its legal advisor. For Dash, Kirkland & Ellis LLP was the company’s legal advisor.
“Joining forces with Dash puts us at the leading edge of technology and enables us to broaden our prime services suite to create more opportunities for our current and future clients,” added Carrico.
“With access to a much wider suite of institutional solutions, we can now offer our clients the ability to solve more problems while passing along the scale and efficiencies technology enables.”