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FIA Expo 2021: Exegy Merger Seen as Solid Marriage of Products, Businesses

John Lothian

John Lothian

Executive Chairman and CEO

Why bring Exegy Inc. and Vela Trading Systems together? The firms combined forces last May and two of their executives talked to JLN about the reason behind their merger at the FIA Expo 2021 in November.

David Taylor, Exegy’s chief technology officer and co-president, said the combination allows the companies to have more scale in the marketplace, more tools and more opportunities to invest in the expansion of the company’s offerings. “Growing organically and inorganically was always part of our agenda,” he said.

From Exegy’s vantage point, Vela had complementary abilities and clients, Taylor added. Exegy “had actually been talking with the [Vela’s] management for some time about the right time to put the deal together.” 

Exegy’s chief revenue officer, Craig Schachter, pointed out that Marlin Equity Partners facilitated the deal. A global investment firm with about $8 billion of capital under management, it acquired both Vela and Exergy on the same day and merged them to create the new Exegy.

“The idea here is that Marlin is, I would say, a very aggressive private equity organization,” Schachter said. “They look at us as a Tier 1 investment that they can build around,” he said.

In the past, Vela acquired strong companies like Options City, Taylor said, but it only recently rebranded as Vela, so it made sense to take on the joint moniker of Exegy. The company was strong among the Tier 1 clients both companies serviced, and felt it could make that brand stronger through its market teams, Taylor added.

Exegy’s stated goal is to provide global market data solutions, predictive trading signals, and hardware trading platforms to the financial services industry. Vela is an independent provider of data and execution technology.

“We are the first point of contact for clients from the trading venues,” said Taylor, “and we are building out machine-learning models and algos. We are making all data platforms predictive.”

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