StatPro to buy Canada's FRI Corporation

StatPro to buy Canada's FRI Corporation

StatPro, an AIM-listed supplier of portfolio analytics software for fund managers, has signed a contract to acquire FRI Corporation, a Canadian provider of portfolio management technology, for a total consideration of £25 million.

Founded in 1968 FRI is based in Toronto and Montreal and provides securities information services and asset, wealth and trading management software to around 190 clients.

FRI reported audited turnover of £9.2 million (C$19.6 million) and profit before tax of £1.2 million (C$2.6 million), for the year ending 31 December 2005.

Under the deal, StatPro will pay £23.7 million of the purchase price in cash and the remaining in its common stock. The London-based firm says it will raise £10.6 million in a share placing to fund the acquisition.

Justin Wheatley, chief executive of StatPro, says the acquisition significantly strengthens the company's position in the North American market and creates a number of cross-selling opportunities to existing clients.

"The acquisition continues our stated strategy to grow by acquiring new products and investing in such products for growth, rather than developing products from inception," says Wheatley.

StatPro says the deal will also enable it to extend its product reach by the provision of software combined with market and other data, whilst also enhancing its ASP offering.

The share placing and the acquisition is expected to be completed on 24 October.

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