Advent picks up trading software company

Advent International has bought derivatives software company Sophis, offering management an opportunity to invest in the company as part of the deal.

European buyout firm Advent International has bought French derivatives technology company Sophis for an undisclosed sum.

Hervé Vinciguerra, Sophis’ founder and chief executive, will move to a supervisory board position while retaining a “significant” equity stake in the business. He will work with the buyout firm to manage his transition from an executive to a non-executive role.

Arnaud Vinciguerra and Nicolas Roussel will reinvest as part of the transaction and keep their executive positions alongside Pascal Xatart, who is joining the company as chief executive. Xatart previously served as chief financial officer at Linedata Services, as well as managing director of its asset management division in Boston.

The rest of the management will remain unchanged. They will also be given the option of investing in Advent’s buyout.

Sophis has two software products, Risque and Value, which allows clients such as hedge funds to price, risk manage and process instruments across all asset classes.

The company had revenues in excess of €48 million last year. Hervé Vinciguerra said Sophis has enjoyed annual growth rates of over 40 percent, with a double-digit profit margin over the last three years.

The company will accelerate its international expansion under new ownership, especially in North America, he added.

Advent has previously invested in US alternative trading system BondDesk Group and inter-dealer broker GFI Group, which completed its IPO on Nasdaq in January 2005.