Orc and Neonet announce merger
First Published Monday, 25 January 2010 from Automated Trader : Automated Trading News
Orc to combine technology for derivatives trading and connectivity with Neonet's solutions and technology services for equity trading
Thomas Bill, CEO, Orc. "By joining forces, the merger will enable us to develop better technology, faster and at a lower cost."
The boards of Orc Software AB (“Orc”) and Neonet AB (“Neonet”) are to to propose a merger to their shareholders. The intention is to create a global player in technology and services for advanced trading in financial instruments. Orc will make a public offer to the shareholders in Neonet. Orc has technology for derivatives trading and connectivity and Neonet has solutions and technology services for equity trading. The merger is intended to generate valuable synergies above all on the income side – but also with regard to costs – which combined are expected to improve the operating income by SEK 130 million annually.
The board of directors of Orc has decided to make a public offer (“the Offer”) to the shareholders in Neonet to transfer their shares in Neonet to Orc in return for payment in the form of newly issued shares. Orc is offering 0.125 new Orc shares for each share in Neonet.
The board of directors of Neonet stands behind the Offer and unanimously recommends that it be accepted by the shareholders1. Shareholders in Neonet representing 50.15 percent of all shares in the company have pledged to accept the Offer.
"Through the merger between two leading providers of technology and services for financial trading, we will create an even stronger global player in this area,” says Thomas Bill, CEO of Orc. "By joining forces, the merger will enable us to develop better technology, faster and at a lower cost. Following a period of powerful growth in Orc, this transaction will ensure access to a significantly larger potential market for the future group and thus create the conditions for continued strong growth."
"Neonet and Orc complement each other very well. Orc is a leader in solutions for advanced derivatives trading and connectivity. In combination with Neonet’s strong portfolio of equity trading and hosted technology solutions, we will create an extremely attractive customer offering," says Simon Nathanson, CEO of Neonet.
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