LONDON, Oct 4 (Reuters) - Bankers are working on debt financings totalling €380m to back a potential buyout of French trading software provider Ullink, banking sources said.
HgCapital acquired Ullink in 2014 and has decided to put it up for sale, hiring Credit Suisse to run the process, the banking sources said.
The sale is expected to attract interest from private equity firms and trade buyers and first round bids in an auction process are due on October 11, the sources said.
HgCapital was not immediately available to comment.
Some €380m of debt financing equates to around 6.5 times Ullink’s approximate €55m Ebitda, including undrawn facilities, the sources said.
Debt is expected to be in the form of senior leveraged loans and subordinated paper, the sources said.
“It is a classic software business that is well entrenched so lots of banks will be looking to fund any potential buyout,” a senior banker said.
Founded in 2001, Ullink provides electronic multi-asset trading applications to the financial community, servicing both buyside and sellside participants.
Ullink’s clients include over 150 of the world’s top-tier banks in 39 countries to regional niche specialists across Europe, North America and Asia Pacific.
The business is headquartered in France, although around 60% of staff and around 90% of revenue are outside the country, according to HgCapital’s website.
Editing by Alasdair Reilly