OMX to sell off bank and broker business

OMX to sell off bank and broker business

Swedish technology group and exchange operator OMX is selling its technology business serving banks and brokerages and will focus on supplying systems to marketplaces instead.

The group says it is in talks with potential buyers and expects to complete the sale of its bank and brokerage unit in the autumn.

The discontinuance of the unit is expected to have an annual impact of Skr350 million on OMX's revenue, but will also boost annual operating profit by Skr60 million.

OMX says the divestment is not expected to result in any redundancies.

The group's technology is used by a number of banks in Europe including ABN Amro which uses its trading technology and WestLB which uses OMX systems for securities processing.

Magnus Böcker, president and CEO of OMX, says the group will now "focus on future growth in the marketplace segment, possibly through complementary acquisitions".

As part of the business reorganisation, the company is bringing in Markus Gerdien, former president of Front Capital Systems, to replace Klas Ståhl as president of its OMX Technology unit.

Ståhl joined the firm in Februrary 2003 when OM merged its banking and broker services divisions into one business unit.

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