ConvergEx Group, a leading technology company, today announced that it has signed a definitive agreement to acquire LDB Consulting, a company that develops software that assists in the computation and optimization of capital charges, including security haircuts and margins.
Founded in 1987, LDB's software suite performs various calculations, including: optimized charges for equities, listed derivatives, baskets and OTCs; portfolio margining; and haircuts for fixed income asset types. LDB's software also calculates repurchase and reverse repurchase agreement charges, taking advantage of allowable relief.
Financial terms were not disclosed. The deal is expected to close on or before December 31, 2010.
"LDB is the undisputed leader in the development of this critical software, making this acquisition an ideal addition to ConvergEx," said Joseph M. Velli, chairman and chief executive officer of ConvergEx Group. "We are tremendously committed to LDB's products, both as stand-alone technologies and as tools to enhance a number of ConvergEx's existing platforms."
"The talented employees at LDB are recognized experts with a long history of risk and margining experience," said Anthony Saliba, chief executive officer of ConvergEx's LiquidPoint. "We are thrilled to welcome them to the team."
"The opportunity to combine with a dominant force such as ConvergEx allows LDB to continue serving its clients with enhanced and improved products in the regulatory capital area," said Len Bole, president of LDB Consulting. "The potential for joint development bodes well for the continued improvement of our offerings."