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UPDATE 1-CovergEx drops merger with CVC Capital
December 23, 2011 / 1:25 PM / 6 years ago

UPDATE 1-CovergEx drops merger with CVC Capital

* ConvergEx dropping talks due to probes by U.S. regulators

* Probes involve trade execution practices through co’s Bermuda unit

Dec 23 (Reuters) - ConvergEx Group, a software provider for brokerage and investment technology firms, said it terminated its merger agreement with private equity firm CVC Capital, partly because of probes by U.S. regulators.

CVC Capital was looking to buy ConvergEx, which is partly owned by Bank of New York Mellon, for $1.9 billion, Bloomberg had reported in July.

In May, ConvergEx filed to raise up to $400 million in an initial public offering.

The parallel investigations by the U.S. Securities and Exchange Commission and the Department of Justice primarily involve some non-electronic trade execution practices conducted through its Bermuda unit, ConvergEx said in a statement.

The unit, ConvergEx Global Markets, is projected to generate about 7 percent of the company’s total revenues in 2011.

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