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Fast-growing local software firm bought for $80M by public company

July 6, 2017

Indianapolis-based Archway Technology Partners LLC, which specializes in wealth management software, has been acquired by Pennsylvania-based SEI Investments Co. for a whopping $80 million.

The deal closed on Monday, and SEI—a publicly-traded company also in the wealth management sector—made the announcement Wednesday.

SEI said the pricetag could grow by an additional $8 million, to $88 million in total, if certain financial targets are met in the future.

Founded in 2002, Archway has more than 200 clients in the private wealth management industry, including banks, financial advisers, fund administrators and offices that specialize in managing family holdings. 

The company’s Indianapolis office is in the Keystone at the Crossing area on the city’s north side. Archway also has regional offices in New York and Denver, with 125 total employees in the three locations.

“We fully anticipate maintaining those offices and that personnel,” SEI spokeswoman Dana Grosser told IBJ.

With the acquisition, Archway is now named SEI Archway. Jason Brown, who founded Archway and most recently served as its CEO, is now the chief executive of SEI Archway. He will report to SEI’s head of investment manager services, while the rest of Archway’s reporting structure remains in place.

In a written statement, Brown said, “We are excited to be a part of the SEI family and look forward to the expanded opportunities that lie ahead for our combined organization.”

SEI said the acquisition will position it to become the market leader in services to family offices—advisory firms that serve wealthy families and high-net-worth investors by managing their assets and providing a full range of other financial services.

The acquisition "represents a modest shift in SEI’s long-held belief in purely organic growth. We believe there is value in growing through carefully considered strategic acquisitions that add to our expanding geographic footprint, market reach, platform functionality and expertise,” SEI Chairman and CEO Alfred P. West Jr. said in a statement.

Archway earned $3.6 million on $17.9 million in revenue last year, and this year it is projected to earn $5.6 million on $25.1 million in revenue, according to a SEI filing with the U.S. Securities and Exchange Commission.

Archway reported revenue growth of 104 percent between 2013 and 2015, landing it the No. 18 spot on IBJ’s 2016 Fast 25 list of fastest-growing local companies. 

SEI, founded in 1968, has about 3,200 employees serving 8,600 clients in the United States, Canada, the United Kingdom, Europe, South Africa and East Asia. The company provides investment processing, investment management and investment operations solutions for corporations, financial institutions, financial advisers and ultra-high-net-worth families. 

As of March 31, SEI managed or administered $779 billion in hedge, private equity, mutual fund and pooled or separately managed assets. 

The company reported 2016 net income of $333.8 million, or $2.07 per share, on revenue of $1.4 billion.

 

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