RealTime IT News

ICG Takes Stake in Trading System Provider

Continuing its business-to-business buildout, Internet Capital Group Monday took a $29 million stake in DNI Holdings Inc.

DNI operates Blackbird, an electronic over-the-counter derivatives trading system. Chris Klein, managing director of operations at ICG (ICGE), will join the DNI board of directors.

Blackbird was co-founded in 1996 by Raymond May and Shawn Dorsch, two former derivatives and technology experts from JP Morgan. Popular in the market, Blackbird offers dealers some advantages over traditional trading channels, including increased market transparency and liquidity, superior execution, and significantly lower fees.

"Financial services is a top priority market for Internet Capital Group, and we believe Blackbird will serve as our platform in the OTC derivatives market," Klein said. The Blackbird technology, first-mover advantage and management domain expertise should propel the company into a clear leadership position in this huge and growing market."

Last month, ICG snagged software firm RightWorks for $657 million to fortify its position as a leading provider of online marketplaces. In February, the venture capital firm bought a $450 million stake in online financing broker eCredit.com.