Advent Software Inc., a leading provider of software and services for the wealth management, institutional, trust and hedge fund industries, has signed a definitive agreement to purchase Black Diamond Performance Reporting LLC , a leading provider of Web-based, outsourced portfolio management and reporting platforms for independent financial advisors.
Under the terms of the agreement, Advent will pay approximately $73 million for all the outstanding ownership units of Black Diamond, subject to adjustment for third-party expenses and certain other specified items. The acquisition is subject to customary closing conditions and is expected to be completed during the second quarter of 2011
The deal, though it is certain to create synergies, is likely to come under close scrutiny from the advisor community in light of Advent's handling of the TechFi acquisition several years ago. It remains to be seen how advisors will react to the Black Diamond/Advent combination, but a number of sources said that many advisors are likely to be skeptical initially, and that it will be up to Advent to prove that the combined firm will offer benefits for current and potential users of the platform.
"Advent's acquisition of Black Diamond will accelerate our combined ability to help advisors succeed by giving them an innovative, purpose-built platform so they can grow their practices and delight their clients," said Advent's Founder and CEO Stephanie DiMarco. "Advent is passionate about helping our clients to be great, and we share that passion with Black Diamond-we are excited about their commitment to advisors' success and vision for their clients. Black Diamond has a well-earned reputation for innovation and client focus, and I am thrilled to have them join the Advent team."
"I'm excited about joining forces with Advent. We are both driven by providing the best solutions for our clients," said Black Diamond's founder and CEO Reed Colley. "Black Diamond now gains access to resources to accelerate both our product development and growth. The combination of Black Diamond and Advent is a great mix of our focused, innovative solutions with one of the most trusted pioneers in investment management technology. Together, I am confident we will continue to redefine how advisors use technology to grow their practices and achieve great results for their clients."