Mondas buys Blue Curve; warns of lower revenues
24 November 2005 | 4800 views | 0
UK-based banking and securities systems vendor Mondas has acquired Blue Curve, a provider of research distribution software to financial firms, in an all share deal worth £3 million.
Blue Curve's software and services enable investment banks and fund managers to create, process and distribute financial research and documentation.
For the year ended 31 December 2004, the company incurred a loss after taxation of £91,000 on sales of £979,000.
Under the acquisition deal, Blue Curve will receive an initial consideration of £925,000 through the issue of 5.6m new Mondas shares at 16.5p per share. The deferred consideration of up to £2,075,000 will be based on Blue Curve's revenues for the year ending 31 December 2006.
Mondas says considerable opportunities exist to exploit synergies between the two companies and to eliminate duplicated overheads.
Jarlath McGee, chief executive of Mondas, adds: "This acquisition is a key element in creating critical mass within the banking and securities division and complements our product offerings to the investment management market."
But the news comes as Mondas warns that for the six months ended 31 October 2005, revenues will be lower than the comparative period last year due to project slippages within its banking and securities division.
AIM-listed Mondas says the drop in revenues in the period has been partially offset by revenue growth within its resource division, following an increased level of new name sales.
However the group says operating costs have been reduced, including a significant reduction in restructuring charges, and so it expects to incur a lower pre-tax loss compared to last year.