Reuters acquires risk outfit Application Networks
12 June 2006 | 8017 views | 0
UK news and financial data company Reuters has acquired Application Networks, a provider of trading and risk management software, for $41 million in cash.
Application Networks, which has offices in London and Palo Alto, provides the JRisk cross-asset derivatives trading and risk platform which is used by banks including JPMorgan Chase, Société Générale, UBS and Wachovia.
Reuters says the acquisition will accelerate the growth of its trade and risk management division.
The JRisk product will be integrated with Reuters' Kondor+ trading and risk technology. Reuters says clients will be given the opportunity to migrate to the new combined platform within the next 24 months.
Andrew White, Reuters global head of trade and risk management, says: "Reuters is accelerating the delivery of an advanced product to new and existing customers. Backed by the global resources of Reuters, we believe it will become the leading choice for innovative banks and hedge funds."
Reuters says senior managers from Application Networks will be joining the firm today. Application Networks CEO Evrard van Hertsen becomes head of product and strategy for Reuters trade and risk management, while Lionel Simon will lead product management. Alex Hernandez, based in Palo Alto, will become CTO of the division.