TietoEnator and OMX can Nordic IT JV plans

TietoEnator and OMX can Nordic IT JV plans

Nordic technology firm TietoEnator says it has cancelled plans to establish a joint venture firm with OMX, but is buying part of the Swedish vendor's banks and brokerages unit instead.

The two companies said in December that they would set up a joint firm that would sell securities processing and asset management software to banks and brokerages in Northern Europe.

But in separate statements released today, the companies say they have scrapped the JV plans.

TietoEnator says it is looking at future cooperation on the development and delivery of a pan-Nordic securities processing system, but will initially work as a subcontractor to OMX going forward.

The Nordic firm says it is also acquiring the IT element of OMX's banks and brokerages business in a deal worth around EUR13.6 million. Under the agreement TietoEnator will continue providing IT services to the OMX banks and brokerages unit for the next three years. The deal will see 21 OMX employees transfer to TietoEnator's processing and network division.

OMX said last August that it was selling its technology business serving banks and brokerages to focus on supplying systems to marketplaces instead.

In November the Swedish firm sold its Palion technology unit, which serves banks and brokerages in Australia, to Brisbane-based GBST Holdings for A$5.1 million.

But despite these piecemeal sell-offs, OMX is still trying to offload the rump of the business, which employs around 75 staff.

In today's statement OMX says negotiations are ongoing with two potential buyers for the business, althugh specific details were not disclosed.

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