Source: GL Trade
GL Trade, global provider of complete front-to-back office software solutions for financial institutions, announces the cession of Ubitrade GMBH, distributor of Fermat risk management products in Germany, Austria and the Netherlands since February 2001, to the Fermat Group.
This will take effect on 2 January 2007.
GL Trade and Fermat have both agreed not to renew this distribution agreement. The Frankfurt-based employees dedicated to this activity will be transferred to Fermat as of the beginning of 2007.
"The distribution of the Fermat product line benefited from Ubitrade's sales network and expertise, which has since been integrated into the GL Trade Group," stated Pascal Froux, President of Fermat. "With more than 100 clients and presence over 23 countries, Fermat operates in Europe, Asia and the Americas and employs 180 staff. As far as Germany, Austria and Holland are concerned our current strategy is now to distribute our Basle II and ALM products directly, which explains the buy out of Ubitrade GMBH."
"The Fermat product line has generated an exceptional level of business since GL Trade acquired Ubitrade in late 2004, although sales in Germany, Austria and the Netherlands were essentially non-recurrent and involved a large amount of consulting," stated Vincent Burzynski, Group Managing Director of Front to Back Solutions. "GL Trade will now concentrate on the development and marketing of its own software products."
The Fermat product line generated sales within the GL Trade group of about €10m in 2006, nearly 80% of which originated with two major customers. In 2007, GL Trade expected this product line to generate sales of €5m.
The GL Trade group reported a turnover of €135.3m at 30 September 2006, up 2% compared to the same period in 2005. Excluding Fermat, which staged an exceptional sales performance in 2005, sales growth would have reached 4%.