SimCorp sells off treasury systems business
29 May 2007 | 4454 views | 0
Danish fintech vendor SimCorp is selling its treasury systems business to Nordic private equity investor CapMan for a total consideration of EUR12.5 million.
In a statement the Copenhagen-based vendor says the sale of its IT2 technology business, which is housed in its SimCorp Treasury Solutions unit, will enable it to focus fully on developing and selling its investment management platform, Dimension, which has formed "95% of the group's activities so far".
SimCorp says the 39 staff currently employed at the unit "can look forward to continuing the positive development with an owner and management whose principal focus will be on the development of software and solutions to the treasury market".
The EUR12.5 million purchase prices comprises an upfront payment of EUR11 million plus an additional EUR1.5 million if revenue targets for the IT2 business are met in 2007 and 2008.
SimCorp says the sale will increase its pre-tax earnings for 23007 by EUR7.5 million, but following the sale the group's revenue expectations for 2007 will be reduced "by the expected turnover of IT2 corresponding to EUR9 million for the full year".
The sale is expected to close on 3 July.