Electronic trading vendor Nyfix is to acquire buy-side solutions supplier Javelin Technologies in a $55 million transaction of both cash and common stock.
The transaction, which is scheduled to close on 31 March, 2002, consists of approximately $11 million cash and approximately $44 million of Nyfix common stock. In addition, Nyfix has negotiated an earn-out based on Javelin's 2002 revenues.
Javelin Technologies provides a range of FIX (Financial Information eXchange Protocol) technology products and has over 1000 installations at more than 300 leading buy and sell-side institutions, exchanges and ECNs, including over 50 clients in Europe and 20 in Asia.
Peter Kilbinger Hansen, chief executive officer of Nyfix, says: "We intend to leverage obvious service combinations and cross-selling opportunities in our core business models. We also see this as a shortcut to engage a portion of the Javelin customer base in our transaction based offerings, as it relates both to our Transaction Services group and Nyfix Millenium."
The plan is to embed Millennium capabilities in Javelin technologies, he says, offering increased connectivity to the buy-side institutional market and reducing implementation time of the Nyfix Millennium alternative trading system (ATS) throughout the industry. The ATS provides a real-time automated matching system for equity trading.
Javelin, headquartered in New York City with offices in San Francisco, London, Paris and Hong Kong, will operate as a wholly-owned subsidiary of Nyfix. Javelin's founder Kledaras will be nominated for membership to the Nyfix board of directors. Current Javelin president and COO, John Coulter, will maintain responsibility for business operations.