Source: Orc Software
Orc Software, a leading supplier of automated trading technology, announced today that the company acquires the remaining 28 percent of the subsidiary Orc ExNet.
Orc ExNet is a trading network service that enables Orc Software's clients to trade securities on financial markets worldwide without the need for membership on these exchanges.
The purpose of the acquisition is to have a more straightforward company structure with complete control and increased flexibility regarding the trading network service.
The remaining 28 percent is acquired October 1, 2005, from Orc ExNet's three founders:
Richard Tejme, CEO of Orc ExNet (8%)Thomas Gidlund, working Board member of Orc ExNet (10%)Fredrik Crafoord, external Board member of Orc ExNet (10%)
Orc ExNet has in the transaction been valued at a total of SEK 31 million. Orc ExNet’s average sales for the years 2003-2004 amounted to slightly more than SEK 10 million with income after tax equal to SEK 1.8 million. During the first half of 2005 sales amounted to SEK 7 million and income after tax equaled SEK 1.4 million. A total of 4 persons are employed by Orc ExNet. The purchase price amounts to SEK 8.8 million. The two founders who work in Orc ExNet will remain in the company and in conjunction with the transaction they have agreed to purchase the equivalent of at least 20 000 Orc Software shares or call options to be held until the end of 2006.