Axioma develops, markets, and implements optimization modeling and decision support software for the financial services industry. The company was founded in 1998, delivers proprietary solutions and data services offerings to over 400 leading asset managers, asset owners, sell-side participants and hedge funds. 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”) has maintained an ongoing relationship with Axioma’s management team for more than ten years, notably assisting them on creating an acquisition roadmap that aligned with the company’s growth expectations.
In March 2015, Goldman Sachs hired M&A to advise them on their investment in Axioma, after they identified the investment opportunity to them. M&A understood that the company was well known as a leading provider of cloud-based risk-management and portfolio-construction solutions to financial institutions and used by thousands of investors across the globe. M&A began the process with a detailed review of the company’s strengths and weaknesses. In an effort to gain a thorough understanding of the business, M&A staff interviewed senior management, reviewed the company’s operational and financial results, and examined the firm’s strategic plans and budgets.
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.
In addition, M&A organized a detailed plan on the eventual / potential exit options of the business, including keen insights on global exchanges becoming more entrenched in the multi-asset enterprise risk management, portfolio-construction, regulatory reporting and custom index segments, with a growing strength in fixed income.
M&A worked with the Merchant Banking Division of Goldman Sachs to assist in conducting a detailed review of Axioma’s operational strengths and weaknesses, financial results and to coordinate and conduct due diligence. The firm built a financial model to support Goldman Sachs’ analysis, conducted a review of Axioma’s management’s business plan, orchestrated due diligence reviews and assisted Goldman Sachs with bidding.
This transaction underscores M&A’s domain expertise and its successful track record in the capital markets software space and providing buy-side advisory to top-tier financial sponsors. The terms of the transaction were undisclosed.
M&A is pleased to have served as exclusive strategic and financial advisor to Goldman Sachs on this significant transaction.