Derivatives technology company Orc Software has purchased Neonet a technology services provider for equity trading for SEK 1,277 million ($177 million).
The new group will create a transaction network covering all major exchanges, as well as alternative marketplaces such as MTFs and dark pools.
After the merger the new group will consist of two parts; Technology and Transaction Services. Technology will offer Orcs and Neonets technology solutions, in the form of licenses according to Orcs current business model and via hosted technology solution. In 2010, Technology is expected to account for approximately 60% of the new groups turnover.
Transaction Services will offer a global execution network for equities and derivatives, and is expected to account for approximately 40% of the turnover.
Restructuring of operations and transaction costs will amount to approximately SEK70 million ($10 million) during 2010.
Through the merger between two leading providers of technology and services for financial trading, we will create an even stronger global player in this area, says Thomas Bill, CEO of Orc. By joining forces, the merger will enable us to develop better technology, faster and at a lower cost. Following a period of powerful growth in Orc, this transaction will ensure access to a significantly larger potential market for the future group and thus create the conditions for continued strong growth.
Neonet and Orc complement each other very well. Orc is a leader in solutions for advanced derivatives trading and connectivity. In combination with Neonets strong portfolio of equity trading and hosted technology solutions, we will create an extremely attractive customer offering, says Simon Nathanson, CEO of Neonet.