ACTIV Financial

January 20, 2010 08:45 ET

ACTIV Financial Closes Investment From Bessemer Venture Partners

Investment Round Follows Year of Growth and Global Expansion

NEW YORK, NY--(Marketwire - January 20, 2010) - ACTIV Financial, a global provider of fully managed low-latency market data solutions, today announced that Bessemer Venture Partners has made a minority equity investment in the firm.

ACTIV will use the proceeds to drive new customer acquisition, power continued product innovation and meet the escalating market demand for quality, cost-effective and ultra-low latency market data solutions. The demand is being fueled by the tremendous growth in market data volumes and move toward co-location facilities to support advanced and profitable global trading strategies.

"We are happy to be able to complete this financing for the clear leader in low-latency market data solutions," said Rob Stavis, Partner at Bessemer Venture Partners. "ACTIV's best-of-breed technology and strong customer loyalty portends a rapid increase in industry adoption and growth. It's unusual to find an opportunity to invest in a company with the type of growth, broad product line and time-tested model that ACTIV offers. We see the company as a cornerstone of our portfolio of financial services investments."

The investment follows a year in which ACTIV significantly grew its client base, expanded its partner ecosystem and global footprint, and continued its strong commitment to research and development. ACTIV now serves over 300 customers worldwide and manages more than 130 feed handlers and nearly 20 data centers spread across five continents. 2009 highlights included:

--  New support for local and global access across major market centers
    in North America, Europe, Asia and Latin America
--  Launch of European operations and the appointment of David Hann as
    managing director EMEA
--  Introduction of Tokyo co-location for TSE and MPU-based Arrowhead
--  A  new data center launch in Korea to provide global and local
    support to power automated, algorithmic and high-frequency trading in the
    Korean marketplace
--  Investment in quality leaders with proven market data expertise to
    ensure exceptional customer support, including Scott Hall, managing
    director of sales North America, and Steve Williams, VP of Professional
--  Successful and fruitful partnerships with Atrium Networks, Ballista,
    Equinix, KVH, NTT and more

"Companies today require fast access to global market data, but solutions must offer a way to control escalating costs in the face of the explosion in message rates," said Frank Piasecki, co-founder and president of ACTIV Financial. "ACTIV is uniquely suited to manage these evolving market challenges. BVP's expertise in managing high-growth financial technology companies and their 100 year history of stability makes them an ideal partner to help propel ACTIV and our customers into the future. We look forward to continuing to capitalize on demand and help sophisticated investors meet their complex global data and trading requirements."

ACTIV is one of the only vendors to offer best-in-class ultra low-latency and hosted/co-located delivery architectures on top of traditional market data services, including a quote terminal GUI and high-quality consolidated feed delivery. The ACTIV platform includes underlying message oriented middleware for enterprise date aggregation and distribution, hardware acceleration components and a robust set of value add applications such as news and tick and historical database servers. The company's 40+ ISV partnerships are a testament to the value ACTIV delivers to a host of financial market data applications and providers.

Terms of the transaction were not disclosed.

About ACTIV Financial

ACTIV Financial Systems, Inc. is a global provider of fully managed market data solutions and technologies to market makers, hedge funds, brokers and trading systems. The company provides managed low-latency and high-volume market data services to more than 300 customers worldwide. As vendor of record, ACTIV also delivers consolidated, hosted and on-site ticker plant services for exchanges around the globe. ACTIV is privately owned with offices in Chicago, New York, Tokyo, Singapore and London.

About Bessemer Venture Partners

From offices in New York, Silicon Valley, Boston, Beijing, Mumbai and Herzliya, BVP manages more than $2 billion of venture capital invested in over 130 startups around the world. Some of our portfolio companies include Skype, LinkedIn and Yelp. Our financial technology investments include Gerson Lehrman Group, Quadriserv, Streambase, United Capital, Soleil Securities and Indian retail brokerage firm Motilal Oswal. With our roadmap approach to investing, BVP seeks out entrepreneurial opportunities across industries and geographies. For more information please visit