Global technology, data and analytics company EquiLend has revealed that it will be acquired by Welsh, Carson, Anderson & Stowe.
The acquisition, anticipated to conclude in Q2 2024, is contingent on regulatory approvals. As part of the transaction, WCAS has committed an additional USD 200 million investment to support EquiLend's organic growth initiatives and potential acquisitions. In the company press release, EquiLend's CEO highlighted the company's notable growth in the securities finance market and expressed confidence that the partnership with WCAS will facilitate further advancements.
Officials from WCAS commended EquiLend's technology solutions and established client relationships, emphasising their potential to drive electronification, efficiency, and innovation in the market. The collaboration aims to propel EquiLend to new heights in delivering great customer service and innovative technology solutions.
Welsh, Carson, Anderson & Stowe is a US-based private equity firm established in 1979, which focuses on technology and healthcare industries. With a strategy centred on partnering with management teams, the company aims to create value through operational enhancements, growth initiatives, and strategic acquisitions. According to the official press release, to date, WCAS has raised and managed funds totalling over USD 33 billion in committed capital.
Founded in 2001 by a consortium of global banks and broker-dealers, EquiLend has expanded its client base to nearly 200 entities, including asset owners, agency lending banks, broker-dealers, and hedge funds. The company's suite of financial technology solutions encompasses electronic trading, order management, post-trade automation, data and analytics, and regulatory technology solutions.
In March 2023, EquiLend selected Digital Asset to provide the distributed ledger technology underpinning the EquiLend 1Source initiative. EquiLend underwent a 1Source proof of concept (POC) with financial market leaders, which concluded in December 2022.
In September 2023, EquiLend announced that its DLT platform for securities lending, 1Source, has entered pilot mode. At the time, it was clarified that EquiLend already provided a record of trades, but each counterparty copied the details to internal systems. To address the challenge of facing subsequent modifications, such as rate changes and separate records no longer being in sync, 1Source aimed to provide a shared DLT ledger of agreed transactions and changes, thereby removing the need for manual reconciliations.
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