As has been anticipated for some time, last night Triple Point announced the acquisition of Rome Corp., the developer of Rome Energy, one of the leading credit risk solutions for energy and commodity trading. According to the press release from TPT, “The acquisition broadens and deepens Triple Point’s product portfolio, enabling it to uniquely offer enterprise risk management solutions covering the four key contributors of corporate financial exposure: market risk, governance and regulatory compliance risk, operational risk and counterparty credit risk.”

Following almost immediately, and as they did with the Inssinc acquisition in May, TPT announced the release of a new product offering based on the newly acquired solution, this one called Commodity XL for Credit Risk, which, again like the Inssinc acquisition, they are describing as “the first product in the series”.

David Achim, Rome’s President and CEO, apparently will not be joining TPT. However, Dan Reid, one of the founders of the company and Rome’s former chief marketing officer will move to TPT and assume the role of VP, Credit Risk Solutions. In total, 48 employees of Rome will move over. According to former employees of the company, Rome undertook a small reduction in staff immediately following the acquisition a few weeks ago; however, it appears most of the effected employees were administrative staff and were not directly involved in the development and support of Rome’s products.

As I mentioned a couple of weeks ago when word of this acquisition started leaking out, Triple Point is clearly looking to broaden their footprint across the commodity trading space. Having added metals trading, treasury management and compliance, and now credit risk management to their solution set, TPT now posses the widest reach and most comprehensive solution of any vendor in the market. Their challenge will be to fully integrate these latest acquisitions into their core Commodity XL offerings, a task made easier given that both Rome’s products and those of TPT are architected around java.

Rome represents their third acquisition in less than a year. According to the company, they are now close to 400 employees strong, and based upon standard industry ratios, should be very close to the magic $100 million revenue mark. Given their aggressive growth strategy, it seems certain that TPT intends to be the next ETRM/CTRM vendor to announce an IPO.

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