GL Trade profits from economic turbulence

GL Trade profits from economic turbulence

French dealing systems vendor GL Trade says the turbulent markets in the first half of the year boosted demand for its middle and back-office technology as banks moved to upgrade internal control procedures and risk management.

The Paris-based vendor - which is set to be acquired by SunGard later this year - has posted a net profit of EUR12.7 million for the first half of 2008, an 8.7% rise on a year ago.

The company reported turnover of EUR108.2 million in the first half of 2008, up 15% compared with the previous year. However this includes results from the three firms GL Trade bought in 2007 - Decision Software, the New York-based provider of fixed income trading technology, Swiss market data technology vendor Infotec and US outfit FNX Solutions.

Group operating profit before goodwill and amortisation increased by 18.1% to EUR19.6 million, representing 18.1% of turnover.

"In spite of difficult market conditions, the company has met its organic growth target objectives thanks to its product and geographic footprint as well as its recurring business model," says the vendor in a statement.

Business in Asia was brisk, and revenues at the vendor's Middle-Back office and Information Services businesses profited from the difficult economic conditions, with firms looking to upgrade internal control procedures and risk management.

SunGard made a binding offer to acquire a majority 64.51% stake in GL Trade at a price of EUR41.70 per share, on 1 August, valuing the Paris-listed vendor at around EUR400.7 million.

GL Trade says that if its majority shareholders accept the offer, the deal is expected to close in the fourth quarter.

View GL Trade market data here

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