Bravura Solutions Limited (Bravura) - a leading supplier of applications and professional services to the Investment Management industry – has signed an agreement to acquire all of the shares in AB Prodata, a Luxembourg-based financial software vendor. This marks the sixth acquisition for Bravura since its establishment at the end of 2004.
AB Prodata was founded in 1992 and is a major provider in the automated financial messaging market. Its flagship product Babel Integrator ("Babel") increases communication automation directly with counterparties and via platforms. It is currently used by 12 major financial institutions in the UK and continental Europe, integrating with those institutions' own software platforms (including the Rufus GTA software business), to connect a multitude of counterparties in both domestic and international markets.
The acquisition will result in the addition of 17 employees and an established office in Luxembourg. When complete, together with other acquisitions, the transaction will take Bravura's client base to more than 150 financial institutions globally - managed by over 585 staff in 14 offices around the world.
Iain Dunstan, Bravura CEO and Managing Director, said, "The AB Prodata acquisition was undertaken as part of Bravura's planned approach to further expand our presence and foothold in the UK and European market.
"Clients from both companies will benefit. AB Prodata brings additional specialist expertise and reach into markets such as continental Europe. Bravura's size and access to economies of scale will allow for more cost-effective development of Babel and will improve current time-to-market."
Babel is currently primarily provided on a perpetual licence plus maintenance basis. Bravura's intention is to evaluate extending this to an annual subscription plus transaction fee basis, available as a centrally hosted service. This would help make the software more accessible to smaller financial institutions and provide a very competitive variable cost model option to all subscribers.
This acquisition builds on Bravura's expansion and is consistent with the growth and acquisition strategy outlined in the initial public offering (IPO) Prospectus.
"The AB Prodata acquisition also dovetails with our recent acquisition of Rufus (Bank of New York's EU/UU/UK transfer agency software) to create a natural synergy for the two firms. The Rufus global transfer agency system has been integrated with AB Prodata's Babel platform for several years. Together the two products offer one of the most functionally rich platforms on the market today," Mr Dunstan said.
"Bravura does not expect AB Prodata's earnings profile to vary in the short term while the business is integrated and cross selling and development opportunities are formalised," he added.
Mr Phil Boland, AB Prodata CEO said, "This acquisition is an exciting milestone in the company's history. Bravura and AB Prodata are market leaders in their fields. Both have a focus and reputation for quality and customer service and are supported by a team of highly skilled staff.
"The combined group will create a principal supplier of products and services to the Investment Management industry in the region and globally."
The acquisition is expected to be completed in December 2006. Bravura expects to fully integrate AB Prodata with the Rufus business in Luxembourg following completion.