- Brady is divesting its commodities operations to STG
- The divestment will allow both organisations to accelerate growth and focus on innovation in their respective solutions
- STG’s carveout of Brady Commodities is a strategic platform acquisition executed via the STG Allegro Fund
- Brady Technologies will remain under the ownership of Hanover Investors and be focused on its suite of energy trading and risk management software solutions
London, Wednesday 20th July – Brady Technologies (‘Brady’), a leading global trading, risk and logistics software provider for the energy sector, announces the sale of its commodities business to STG, a leading Menlo Park, California-based private equity firm focused on the software, data, and analytics sectors.
Brady’s commodity trading and risk management (CTRM) products, including development and delivery functions is now a stand-alone entity within the STG portfolio. The Brady Technologies business is now completely focused on energy trading and credit risk markets. The deal allows both companies to aggressively pursue their respective product innovation plans and growth strategies, particularly driven by the green energy transition and increasing ESG requirements.
The sale of the commodities business to STG marks a significant milestone in the transformation of Brady, as the company accelerates its product innovation and expansion plans in energy markets. In the past year alone, Brady has launched its first SaaS short-term power trading solution (PowerDesk) and made two key acquisitions in the energy trading and risk software space (Igloo Trading Solutions and CRisk).
Going forward, the commodities business including CTRM products, intellectual property, employees, and customers, will be under the management of STG, a leading private equity firm focused on the software, data analytics and software-enabled technology services sectors.
“We have been extremely impressed by the wide-ranging breadth of functionality in Brady’s financial and physical CTRM platforms and their market leading position and their prestigious customer base”, said William Chisholm, Managing Partner of STG. “Brady Commodities is a strategic platform acquisition for us and this platform will serve as a cornerstone investment for our Allegro Fund.” Ishan Manaktala, STG Operating Partner added, “Brady Commodities is seen as a leader within metals for CTRM given its leading functionality, including best-in-class workflow, pricing, and hedging capabilities (among others). We are committed to continuing to deliver a high-quality customer service and will be making significant investments in product innovation and international markets.”
Matthew Peacock, Founder and Chairman of Hanover Investors, said, “This is an important milestone in Brady’s history as we focus on our exciting future in energy, short term power and risk. We continue to strengthen our leadership position in this dynamic sector, supporting operators and traders through macro-economic challenges as well as the transition in green energy and short-term power. Hanover is committed to investing in Brady’s innovation plans and products to provide even more capabilities for its customers.”
After today, the commodities business will be under the stewardship of STG, although Brady will provide support in certain capacities in the short-term to ensure a smooth transition for all stakeholders. Throughout the next stage of value creation, the top priority of both businesses remains continuity for its customers, employees, and partners.
STG is the private equity partner to market leading companies in data, software, and analytics. The firm brings expertise, flexibility, and resources to build strategic value and unlock the potential of innovative companies. Partnering to build customer-centric, market winning portfolio companies, STG creates sustainable foundations for growth that bring value to all existing and future stakeholders. The firm is dedicated to transforming and building outstanding technology companies in partnership with world class management teams. STG’s expansive portfolio has consisted of more than 35 global companies. For more information, please visit www.stgpartners.com.
Hanover Investors is a specialist investor that operates in under-analysed and illiquid markets. We combine analytical rigour and flexibility in execution which allows for a repeatable model of successful investment selection. A deep understanding of a company’s operational and strategic context is at the centre of our investment process, refined over decades of hands-on management of small to mid-size organisations. We influence the main levers of value creation of an investment, providing our portfolio with access to proven “playbooks” and a Hanover bench of specialists. This approach has delivered a market leading record of returns for over 20 years. Hanover is headquartered in the UK but operates companies with activities across the globe. www.hanoverinvestors.com