OpenLInk to acquie SolArc
SolArc, Inc., a leading provider of commodity management software solutions for companies operating across the commodity supply chain, announced today that it has entered into a merger agreement to be acquired by Open Link Financial, Inc.
SolArc, Inc., a leading provider of commodity management software solutions for companies operating across the commodity supply chain, announced today that it has entered into a merger agreement to be acquired by Open Link Financial, Inc. (OpenLink), a leading provider of energy, commodities, trading, and risk management (C/ETRM) solutions, which support the entire transaction lifecycle.
This acquisition is an exciting endeavor for SolArc as the combination of these two companies and their respective products will provide overall greater value for their customers through a more complete, single-sourced set of solutions under one vendor. This acquisition is unique in that each company brings complementary platforms and a non-overlapping product offering. Together, SolArc and OpenLink will become a leading provider of C/ETRM products focused on the complex business needs of its customers and will provide one of the most comprehensive product portfolios in the industry.
In a collaborative effort with OpenLink, SolArc’s existing products will continue to mature, and SolArc will continue to support and enhance such products. This acquisition will allow existing SolArc customers an opportunity to leverage OpenLink’s strong financial and risk management offerings.
Brad Anderson, SolArc’s Chief Executive Officer, will become an integral part of the OpenLink management team, overseeing the vision and product strategy of SolArc product lines.
Anderson said, “SolArc and OpenLink have had a long-standing respect for each other and the leadership and solutions they provide their customers. We are excited to move forward in a combined effort to leverage each other’s strengths and maximize our potential as the market leader. In an ever-changing industry, we are committed to providing excellent products, service, and education to our customers.”
OpenLink’s Chief Executive Officer Kevin Hesselbirg added, “We are very pleased that we have finally been able to reach an agreement regarding the completion of this acquisition. The management teams have discussed the potential value of this transaction for many years, largely because our joint customers have remarked on the potential synergistic value. The complementary platforms of each company will continually evolve to meet the ever-changing needs of the market place, in particular the convergence of physical and financial trading, combined with the need to manage financial and operational risks across the associated complexities of physical delivery and settlement. It is our firm belief that together OpenLink and SolArc will be positioned to offer the C/ETRM market place an unprecedented single-vendor solution to address the complex needs of their businesses.”
The acquisition is expected to close by the end of 2011, subject to legal and other regulatory approvals.
Since 2003, SolArc has teamed with Technology Crossover Ventures (TCV) for private equity funding. TCV is a widely recognized leader in providing market capital for information technology companies. ArchPoint Partners served as SolArc’s investment banker, and Wilson Sonsini Goodrich & Rosati served as SolArc’s outside legal counsel in this transaction.
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