TPG To Buy Administrator GlobeOp

Feb 1 2012 | 1:20pm ET

TPG Capital has agreed to buy hedge fund administrator GlobeOp Financial Services.

The private equity giant will pay £508 million (US$800 million) for the London-based firm. The per-share offer of £4.35 is a 50% premium to GlobeOp's share price prior to the firm's announcement that it was in talks to sell itself.

GlobeOp's senior management team, including CEO Hans Hufschmid, will continue to run the firm and has agreed to pour 70% of its proceeds from the sale back into GlobeOp. For its part, TPG plans to finance GlobeOp's expansion, including the establishment or acquisition of other hedge fund servicing businesses.

"GlobeOp is a strong global financial services company with a high-quality offering and a robust business model, which we plan to invest in and grow," TPG's Bryan Taylor said.

TPG beat out fellow private equity firm Advent International for GlobeOp, whose shareholders must approve the deal. Investors representing about 44% of GlobeOp's shares outstanding, including major shareholders Aberforth Partners and Standard Life Investments, have already agreed to do so.

GlobeOp put itself up for sale after concluding that "the company's share price significantly undervalues its future prospects," it said last month.

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