London Bridge Software has entered a strategic business alliance with AFA systems and has agreed to acquire 8.2% of the enlarged issued share capital of the City-based solutions vendor.
London Bridge's stake in AFA will be financed as part of a firm placing through which the company is expected to raise approximately £1.8m net of expenses at a price per share of 17 pence.
As part of the alliance, London Bridge has signed an infrastructure agreement and will use AFA's facilities in South Africa to create its own offshore development centre in Cape Town.
In addition, London Bridge will package and distribute AFA's treasury and asset management solutions with it Phoenix product suite, as part of a reseller deal.
Gordon Crawford, chairman, London Bridge Software says: "AFA has demonstrated the significant competitive advantage that it derives from its low cost offshore development capability."
AFA Systems delisted its shares from the London Stock Exchange's main market after completing a £1 million cost reduction programme last year, which involved redundancies in London and the merging of the two South African offices into one base in Cape Town.