Nordic technology outfit TietoEnator is combining with Swedish IT group and exchange operator OMX to create a joint venture company that will sell securities processing and asset management software to banks and brokerages in Northern Europe.
According to a Memorandum of Understanding signed between the two firms, the new company will combine TietoEnator's investment management software with OMX's back office technology.
Both companies plan to transfer relevant assets, customers and employees to the venture - including the assets of OMX's recently acquired Libra business operation, specialised in developing software for the financial market in Iceland.
According to the plans, TietoEnator will be the majority owner of the new company. The joint venture is expected to have yearly net sales of over EUR 32 million and more than 200 employees. TietoEnator currently has 90 employees working within the investment management area.
The final agreement is expected to be signed before the year end for the new joint venture to become operative during the first quarter of 2006, after received regulatory approvals.
OMX said in August that it was selling its technology business serving banks and brokerages in order to focus on future growth in the marketplace segment.