Pico Signs Agreement with Golden Gate Capital for $200 Million Investment to Accelerate Next Phase of M&A Activity
Pico, a leading provider of mission critical technology services, software, data and analytics for the financial markets community, today announced it has signed an agreement for a $200 million strategic investment from Golden Gate Capital, a leading private equity investment firm. The capital will be used to pursue strategic M&A opportunities that further enhance Pico’s comprehensive global ecosystem of best-in-class technology and services, as well as other general corporate purposes.
“We have made significant investments in global expansion, product innovation, operational excellence and in our organization, thereby laying the foundation to support the next wave of substantial growth. We are thrilled to have Golden Gate Capital as an investor and strategic partner supporting us to continue leveraging our leading global technology and data platform to provide additional services for our clients,” said Jarrod Yuster, Chairman, Founder and CEO of Pico. “Golden Gate Capital’s deep financial services experience and track record of successful acquisitions at their portfolio companies will help advance our strategy.”
Pico was founded in 2009 to address the macro trends in electronification of markets across all asset classes. Since then, it has consistently anticipated market requirements and now offers comprehensive financial services trading cloud infrastructure, connectivity, data, software and analytic solutions spanning 55 data centers traversing all key global market centers in the Americas, Europe and Asia. Pico sits at the center of a complex ecosystem powering mission critical applications for more than 430 clients, including the top 25 global banks, 39 exchanges, electronic market makers as well as premier asset managers.
With this investment, Pico will continue to build on the strategic investments it has made in its high-performance, resilient infrastructure and in continuing to extend its data offering and market coverage across all regions and asset classes. Pico has a proven record of acquiring and integrating companies into its technology platform. In 2019 it acquired market leading trading and enterprise analytics solution Corvil Analytics and has continued to enhance its capabilities. It is replicating this strategy with the January 2022 acquisition of Redline Trading Solutions, a provider of multi award-winning trading and market data software solutions. Strengthening its technology platform with Redline gives Pico a significant opportunity to access the $36 billion  addressable market for global data consumption, in addition to the growing $130 billion  market infrastructure addressable market.
“Pico is an impressive company, underscored by a compelling portfolio of technology services, sophisticated client network, unparalleled client experience and proven M&A track record,” said Dan Haspel, a Managing Director at Golden Gate Capital. “We look forward to partnering with Jarrod, the Board and the rest of Pico’s management team to accelerate the Company’s momentum by pursuing additional acquisitions and making additional investments in the business that enable Pico to deepen its leadership in the market and continue to capture additional growth opportunities.”
Existing Pico strategic investors and clients include Goldman Sachs Asset Management, Wells Fargo Strategic Capital, J.P. Morgan, UBS, CE Innovation Capital, DRW Venture Capital, Intel Capital, Singapore-based global investor EDBI, Nomura and Chicago Trading Company.
Additional transaction details are not being disclosed. Jefferies LLC served as financial advisor and DLA Piper LLP served as legal advisor to Pico. Paul, Weiss, Rifkind, Wharton & Garrison LLP served as legal advisor to Golden Gate Capital.
Notes to the editor
 Global Spend on Financial Market Data Reaches a Record $36B in 2021
 Source: McKinsey Capital Markets Infrastructure 2017 report
About Golden Gate Capital
Golden Gate Capital is a San Francisco-based private equity investment firm with over $19 billion in cumulative committed capital. The principals of Golden Gate Capital have a long and successful history of investing across a wide range of industries and transaction types, including going-privates, corporate divestitures, and recapitalizations, as well as debt and public equity investments. Representative financial services investments sponsored by Golden Gate Capital include Nassau Reinsurance, Williston Financial Group, Mosaic Insurance and Angel Island Capital Management, LLC. For more information, visit www.goldengatecap.com
Pico is a leading provider of technology services for the financial markets community. Pico provides a best-in-class portfolio of innovative, transparent, low-latency markets solutions coupled with an agile and expert service delivery model. Instant access to financial markets is provided via PicoNet™, a globally comprehensive network platform instrumented natively with Corvil analytics and telemetry. Clients choose Pico when they want the freedom to move fast and create an operational edge in the fast-paced world of financial markets. For more information, visit www.pico.net.
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For Golden Gate Capital:
David Isaacs / Anne Nisperos Hew