Capitolis announced an agreement to acquire eSecLending in an all cash transaction valued at US$200 million. The deal marks the financial technology company's fourth strategic acquisition in five years and adds securities lending capabilities to its existing platform. eSecLending works with many of the world's largest asset owners, including pension funds, insurance companies, and asset managers.
Securities Lending Capabilities
eSecLending is a leading independent securities lending business with a 26-year history. The company has built an extensive network of institutional investor relationships and a robust ecosystem that includes every major bank and prime broker. Its clients lend securities to major global banks, supporting securities financing transactions and fueling significant growth in recent years.
Complementary Solutions for Banks and Investors
The acquisition extends the Capitolis platform, adding securities lending as a complementary capability to its existing financial resource optimization solutions. The combined offering aims to help banks and institutional investors unlock greater efficiency, optimize resources, and access new opportunities across securities lending, repo, and financing markets. Capitolis also gains access to eSecLending's established network of asset owners and added infrastructure, expertise, and scale.
Leadership Views on Strategic Growth
Capitolis President Okan Pekin said the two companies have known each other for years and have already been partnering to introduce new solutions. He noted the strength of eSecLending's client relationships, the quality of its business, and the deep expertise of its team. Chief Executive Officer and Founder Gil Mandelzis described the deal as transformational and highlighted the company's strong organic growth.
eSecLending Leadership and Client Value
Craig Starble, Chief Executive Officer of eSecLending, said the team is proud of what it has built and grateful to clients and partners. He described Capitolis as an exceptional company with global reach, a strong commitment to innovation, and deep relationships with leading financial institutions. Joining Capitolis is expected to enable eSecLending to expand its market solutions and deliver greater value to clients.
Transaction Structure and Approvals
Capitolis is acquiring eSecLending from Parthenon Capital and the company's management team, while Parthenon Capital is investing in Capitolis as part of the transaction. The acquisition is subject to customary closing conditions, including the receipt of required regulatory approvals and antitrust clearance. eSecLending (Europe) Limited is not included in the transaction, but it will continue to provide services to eSecLending.
Advisors on the Transaction
FT Partners served as the exclusive strategic and financial advisor to Capitolis, with WilmerHale serving as legal advisor. Berenson & Company and Raymond James served as financial advisors to eSecLending. Troutman Pepper Locke LLP and Debevoise & Plimpton LLP served as legal advisors to eSecLending in connection with the transaction.
The acquisition of eSecLending positions Capitolis to broaden its network and expand its securities lending capabilities at a time of strong organic growth. By combining eSecLending's institutional relationships with Capitolis's financial resource optimization technology, the company plans to offer a more complete set of solutions across securities lending, repo, and financing markets. The transaction reflects Capitolis's continued momentum in strategic acquisitions and its focus on helping clients manage financial resources more efficiently.