Swedish technology group and exchange operator OMX has signed a letter of intent to acquire Computershare's markets technology business for approximately Skr250 million.
Under the deal OMX will pay Australian share registry firm Computershare Skr90 million of the purchase fee on completion of the deal, with the rest evenly distributed over the next five years.
Computershare Markets Technology supplies trading, surveillance, routing and back-office products to exchanges and central securities depositories from offices in Sydney, Calgary, New York and London. For the 12 months ending June 2005, the business reported revenues of Skr100 million.
OMX says the acquisition will strengthen its product portfolio, extend its customer base to over 50 marketplaces worldwide and be immediately earnings enhancing.
Based on operational levels of 2005, the unit will add between Skr25-30 million to OMX's operating profit, including cost synergies but excluding transaction-related depreciation.
The transaction, which is subject to necessary approvals and customary conditions, is expected to be concluded by year-end.
OMX has also agreed to form a strategic alliance with Computershare, initially targeted at providing services for issuers in the Nordic markets, and to cooperate on providing consulting services on market infrastructure issues.
The exchange operator said in August that it was selling its technology business serving banks and brokerages and will focus on driving growth of its marketplace business through acquisitions. Earlier this week the group said it was buying Libra Financial Software, a provider of securities processing and loan management software and services, from Iceland-based TM Software.