Deutsche Börse sells entory technology unit to Softlab
06 July 2005 | 4123 views | 0
Deutsche Börse is selling off its technology services business unit, entory, to Germany's Softlab for an undisclosed price.
Deutsche Börse bought the entory business for as much as EUR110 million in 2001.
In a statement,the German says the entory unit no longer fits with the exchange's core business.
Mathias Hlubek, chief financial officer of Deutsche Börse, says: "With the sale of entory, we are increasing our focus on business with products and services along the capital market infrastructure supply chain," he says.
Under the agreement BMW subsidiary Softlab - which provides CRM, contact centre and IT services - will acquire 100% of the shares in entory. The exchange says that both companies have agreed to keep the sale price "confidential" although it is higher than the book value of the investment as of December 31 2004. Market analysts have estimated the book value of entory as of that date at about EUR32 million.
Deutsche Börse spokesman Frank Hartmann told reporters that none of entory's 300+ staff will lose their jobs.
The deal, which is pending anti-trust approval, is expected to be completed this autumn.
Deutsche Börse is still searching for a new a chief exectuive and chairman after Werner Seifert quit in May and chairman Rolf Breuer said he would be stepping down at the end of the year after shareholders revolted against the exchange's plans to acquire the LSE. Deutsche Börse later said it was taking stock of businesses that have not met targets. However, in today's statement Hlubek says there are no plans to divest other group companies.