Swedish equities trading agency broker NeoNet has signed a letter of intent to acquire US institutional direct market access company, Lexit Group.
Lexit is a privately held independent agency broker with offices in the US and the UK. The firm provide electronic direct market access to the major US and European exchanges.
As part of the deal, Lexit co-founders Peter Kearns and Johan Carlsson will join NeoNet's executive management team when the transaction is completed.
The Lexit group recorded revenue of $8.6 million for the fiscal year ended 2002, up from $5.2 million the previous year, and a net loss of $0.1 million. For Q1 2003, revenues were $2.0 million with a net loss of $0.1 million.
Torvald Bohlin, CEO of NeoNet, says: "With the addition of Lexit's US order-routing capabilities we will have the ability to offer our clients in 13 countries electronic direct market access to over 80% of the market capitalisation on the world's stock exchanges."
The purchase price will consist of cash and newly issued shares in NeoNet, subject to shareholder approval and acceptance from both NASD in the US and FSA in the UK regarding the group's change of ownership.