21 August 2017
visit www.avoka.com

Softbank bails out of Cognotec

24 July 2006  |  8864 views  |  0 graph 2

Japanese finance firm Softbank has pulled out of Irish FX dealing technology company Cognotec after taking a EUR31.5 million ($40 million) hit from its stake in the business.

According to a Sunday Times report Cognotec founder Brian Maccaba and FinVentures, the private equity arm of Standard Chartered Bank, are paying $9.5 million for Softbank's 28.5% stake in the vendor.

Softbank has ploughed a total of $60 million into Cognotec in the last seven years. The Japanese firm invested $40 million in Cognotec in 1999 and 2000, while Softbank Ventures, a related venture capital fund, stumped up a further $10 million in 2000.

Softbank invested a further $10 million in 2001 and last year the Japanese firm purchased the venture fund's stake and consolidated its interests into one holding, making it Cognotec's largest backer.

At one point, Cognotec was valued at around $300 million, but the vendor has suffered heavy losses in the past few years and recorded an accumulated loss of $92 million at the end of 2004. But things were looking up last year when the vendor returned to the black and posted an operating profit of $3.7 million and reported revenues of $28.1 million.

However, the deal with Softbank values Cognotec at just $33 million. The deal also makes Maccaba the largest shareholder in the company.

In 2003 Maccaba was embroiled in an Indecent Proposal-style slander case involving the wife of a senior London rabbi over alleged sexual slurs.

Maccaba claimed that he had been slandered by Dayan Yaakov Lichtenstein and accused the senior rabbi of slurring his reputation within the orthodox community by spreading allegations that he was a "sexual predator" and "serial adulterer" who pursued young married Jewish women. Maccaba lost the suit in 2004 after a High Court jury found the case put forward by Lichtenstein was "substantially true" and without malice.

Maccaba is thought to have been hit with legal costs of nearly £2 million from the case, which lasted for 41 days and became the longest-running slander action in English legal history.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

CIBC selects Cognotec's Autodeal+ for FX trading

CIBC selects Cognotec's Autodeal+ for FX trading

27 May 2005  |  6791 views  |  0 comments
Bloomberg teams with Cognotec to deliver streaming FX prices

Bloomberg teams with Cognotec to deliver streaming FX prices

02 August 2004  |  7998 views  |  0 comments
Maccaba loses 'indecent proposal' case

Maccaba loses 'indecent proposal' case

28 June 2004  |  4677 views  |  0 comments
JPMorgan teams with Cognotec to enter FX white label business

JPMorgan teams with Cognotec to enter FX white label business

01 June 2004  |  5877 views  |  0 comments
Maccaba 'indecent proposal' case comes to court

Maccaba 'indecent proposal' case comes to court

22 April 2004  |  3918 views  |  0 comments
Bank of Tokyo-Mitsubishi selects Cognotec's AutoDeal+ for online FX service

Bank of Tokyo-Mitsubishi selects Cognotec's AutoDeal+ for online FX service

03 September 2003  |  5005 views  |  0 comments
Cognotec's Maccaba enmeshed in "indecent proposal" case

Cognotec's Maccaba enmeshed in "indecent proposal" case

06 May 2003  |  4935 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
download the paper nowvisit www.niceactimize.comvisit www.worldpaymentsreport.com

Top topics

Most viewed Most shared
Mobile contactless spending accelerating in UKMobile contactless spending accelerating i...
10434 views comments | 23 tweets | 23 linkedin
Norwegian banks and startups form fintech clusterNorwegian banks and startups form fintech...
8695 views comments | 19 tweets | 23 linkedin
hands typing furiouslyWhy Is Risk Analytics Important?
8546 views 0 | 3 tweets | 1 linkedin
RBS to bring Silicon Valley to EdinburghRBS to bring Silicon Valley to Edinburgh
8388 views comments | 10 tweets | 7 linkedin
Barclays pairs banking data with third party apps for SmartBusiness DashboardBarclays pairs banking data with third par...
7830 views comments | 16 tweets | 16 linkedin