Axioma develops, markets, and implements risk-management and portfolio-construction solutions, optimization models, and decision support software for the financial services industry. The company was founded in 1998, delivers proprietary solutions and data services offerings to more than 1,000 users at more than 400 leading asset managers, asset owners, sell-side participants and hedge funds worldwide. Axioma generates approximately US$100 million in annual contract value (“ACV”) revenue and has grown ACV at a 23 percent CAGR since 2010. Marlin & Associates (“M&A”) had maintained an ongoing relationship with Axioma’s management team for more than ten years.
The Merchant Banking Division of Goldman Sachs, with which M&A has had a long relationship, asked M&A to advise them on their potential investment in Axioma - with a particular focus on industry dynamics, including US and international organic and inorganic growth opportunities. Goldman knew that M&A has a thorough understanding of the marketplace, competitors and potential follow-on acquisition opportunities.
M&A’s thorough understanding of the marketplace, competitors and potential follow-on acquisition opportunities enabled the firm to provide valuable support to the Merchant Banking Division of Goldman Sachs, throughout the deal process.
M&A worked with the Goldman’s’ Merchant Banking Division to review Axioma’s business plans, budgets and forecasts as well as to conduct an analysis of Axioma’s operational strengths and weaknesses. With that background, M&A worked with Goldman to provide insights on a wide range of industry participants in the multi-asset enterprise risk management, portfolio-construction, regulatory reporting and custom index segments of the market, some of which could be future exit partners and others which could be acquisition candidates. Based in part on this advice, the Merchant Banking Division of Goldman Sachs then made a significant equity investment into Axioma.
M&A’s role in this transaction underscores M&A’s extensive market knowledge, domain expertise and successful track record advising top-tier buyers and sellers of capital markets software companies The terms of the transaction were undisclosed.
M&A is pleased to have served as a trusted advisor to Goldman Sachs’ Merchant Banking Division on this significant transaction.