Brady (BRY.L), the leading supplier of trading and risk management solutions for energy, metals and soft commodities, announced today its intended acquisition of Navita Systems AS ("Navita"), a premier provider of software and services to the global energy and commodity trading community.
This acquisition will further extend Brady's footprint in the energy market as Navita's solutions support trading and risk management in a number of segments already familiar to Brady, including electric power, gas, emissions / carbon and related commodities. Furthermore, Brady will gain an extended functional footprint in the areas of physical power and gas, as well as data management, scheduling and nominations, which will enhance its current product offering to the energy markets.
Norway-based Navita, founded in 2003, was formed out of the world's first power exchange, Nord Pool, which was established in 1988. Navita has an established world-wide client base, with long-term clients, including major energy producers and traders. This acquisition will further strengthen Brady's position as the largest European provider of specialist, integrated trading and risk management solutions to the global metals, commodity and energy markets.
The deal is anticipated to complete in early March. Brady also announces a successful share placing with both existing and new investors which, along with existing cash resources and the issuance of Brady shares, will be used to finance the acquisition. This follows a £15 million placing in December 2010 and demonstrates continued strong support for Brady's aggressive growth strategy. The Company looks forward to welcoming the new shareholders in what it sees as being another transformational deal.
"The completion of this acquisition will represent a significant step for Brady in our strategy to accelerate growth in our energy business and builds on the success to date of our Viz Risk Management acquisition in December 2010," Gavin Lavelle, Brady CEO, said. He continued, "The extended solution set which the combined company will bring to the market offers best of breed solutions, enabling customers to benefit from a one-stop shop for both their physical and derivatives trading and risk management solutions."
"We will significantly increase the depth and breadth of our energy solutions portfolio by welcoming a team of highly-trained staff from Navita - individuals who know the marketplace and the market participants, and who already have existing client relationships. As a result of the acquisition we will also now have a greater presence in targeted international markets where we see significant opportunities for further growth. This will result in our being able to offer a greater service to our enlarged customer base."
"It is Brady's aim to be the definitive global partner of choice for trading, risk management and settlement solutions across all commodities and energy products. Navita will further strengthen our offerings in the energy markets following our entry into the market with the acquisition of Viz." He added: "This will be of enormous benefit to customers of both Navita and Brady as energy prices are key for all industrial companies producing or fabricating commodities. The synergies, as well as the extended product offering, will serve to enhance Brady's current solution portfolio. Brady has a successful track record of fast and efficient integration of acquired companies and we are confident clients will quickly see tangible and long term benefits from this latest acquisition."
Knut Johansen, Navita CEO, commented, "Navita's products are seen as the market standard for European energy trading and scheduling. Our close working relationships with the energy markets have resulted in Navita providing the most advanced solutions for energy data management, settlement, nomination, real-time trading, pricing, analysis and risk management currently available." He continued, "Navita becoming part of Brady makes excellent strategic and commercial sense and provides a major opportunity to take Navita's products to the global energy community. Through the current Brady Energy derivatives offering we anticipate being able to have an enhanced product portfolio to support our customers' risk management requirements. We believe Brady's complementary solutions, geographical coverage and strong balance sheet will help us to serve our customers and accelerate our growth."
The acquisition has a compelling strategic and financial rationale for Brady and is expected to be an excellent opportunity to drive continued growth and further extend the geographical reach of the company. It comes quickly after the successful acquisition of Viz, which has shown substantial growth post-acquisition and performed ahead of the Board's initial plans. Brady will now be able to offer its clients full cross-commodity coverage, with integrated solutions for the entire lifecycle of commodities and energy trading from capture, through processing, inventory, invoicing and, ultimately, reporting P&L on the trades.
Separately, Brady plc (BRY.L), the leading provider of trading, risk management and settlement solutions to the energy, metals and soft commodities sectors, is pleased to announce it has extended Brady Energy's product offering through the acquisition of syseca AG ("syseca"). syseca is a Swiss-based company providing logistics software for the electricity markets and adds up-to-date physical electricity trading capabilities to Brady.
syseca has been operating since 1994 and its clients are based throughout Europe. The acquisition has a compelling strategic, commercial and financial rationale as it broadens Brady Energy's product offering to include up-to-date, physical electricity real-time balancing and scheduling capabilities, with connectivity to most major transmission system operators (TSO's).
Brady and syseca have enjoyed a successful commercial partnership in recent years, working together with mutual customers to provide complementary solutions to meet their needs. Following the acquisition, Brady now expects to further strengthen its product offering with a highly qualified and experienced team. Brady's expertise in energy trading and risk solutions, combined with syseca's strength in physical energy trading solutions, creates an excellent platform to drive further revenue growth.
Ernst Killer, President of syseca AG, commented: "We have worked in partnership with Brady on several occasions to provide solutions for customers in the energy market and strongly believe that becoming part of a well-resourced, publicly-listed company will offer our business immense potential to deliver solutions to a wider marketplace, through Brady's global infrastructure." Continuing, he said, "Our business has recently seen some consolidation and is becoming much less fragmented. This is a great opportunity to create an integrated, real-time solution for physical energy trading, which provides complete straight-through-processing, from deal input through to logistics and scheduling."
Commenting on the acquisition, Gavin Lavelle, CEO of Brady, said: "We have collaborated closely with syseca and developed a strong relationship with the team. It provides both product and people skills in the German-speaking markets and uses the latest technology which is highly complementary to our energy solutions. This acquisition further strengthens our product offering by adding to our existing financial and risk management capabilities, providing new growth opportunities."