DIFC Investments, the investment arm of the Dubai International Financial Centre, is to acquire UK software firm Smartstream from private equity group TA Associates.

The all-cash deal values the UK-based software licensing and professional services business at £200m and is expected to close in about a month.

DIFC Investments is impressed with Smartstream's forward-facing approach, said managing director Bisher Barazi.

“We are pleased to acquire SmartStream, a recognised global leader in the development of transaction lifecycle management software used in the back and middle office of many of the world’s leading banks, asset managers, hedge funds and money managers,;" he said.

"It has excellent products, a committed management team and exciting plans for future development in what is the world’s largest IT market, financial services technology.”

TA Associates replaced 3i as the majority investor in Smartstream in 2006.

Last month, Smartstream abandoned plans for a £100m flotation on the London Stock Exchange