ADVFN, the operator of a UK Web site providing financial information to private investors, has bought the technology, customer database and domain name of online IPO firm EO for £150,000 in equity.
The company says it will maintain and re-launch the tool under a White Label when the IPO market becomes buoyant again. ADVFN maintains that it has already covered its outlay by acquiring EO's customer list and two letter URLs, including eo.com, eo.net and eo.co.uk.
Launched at the tail-end of the dotcom boom by former investment banker John St John, the EO System enables investors to apply for new issues of shares online, during an IPO. Investors can view investment opportunities, apply for shares, pay and receive confirmation in an end-to end electronic process.
Clement Chambers, managing director of ADVFN comments: "EO launched at a time when the market in IPOs had all but disappeared, which is why, in the end, the company closed. The depth of the downturn in this market has enabled ADVFN to purchase the EO System for a fraction of its cost. We'll preserve the platform and wait for the return of better times and then re-launch it."