Acquisition of Computershares Markets Technology business strengthens OMXs leading position in marketplace technology OMX, a leading provider of marketplace services and solutions for the global financial and energy markets, has today signed a Letter of Intent with Computershare Limited (ASX:CPU), the global leader in share registration, employee equity plans, proxy solicitation and other specialized financial and communications services, to acquire Computershares Markets Technology business for approximately SEK 250 million, to be paid out over a five year period. With over 30 exchange and CSD customers worldwide, including among others Swiss Exchanges (SWX), Computershare is one of the largest players in the exchange technology market. The addition of Computershares business underlines OMXs position as the global leader in the provision of technology solutions that make securities transactions more efficient. OMX and Computershare have also agreed to establish a strategic alliance, initially targeted at providing services for issuers in the Nordic markets, and to cooperate on providing consulting services on market infrastructure issues. Through their complementary offerings, share registry and technology solutions, there are significant opportunities to benefit from collaborating on the provision of integrated services to the providers of clearing, settlement and depository services. The acquisition is an important step in the implementation of OMXs strategy of focusing and growing in the increasingly international and rapidly changing marketplace segment covering exchanges, clearing organizations and central securities depositories. Key benefits include: Strengthening OMXs solutions portfolio with a suite of advanced financial markets systems and extending its customer base to over 50 marketplaces worldwide. The combination of the two leading exchange technology businesses will create a strong platform from which to build the enlarged business. Combining two complementary development teams, each with significant industry expertise and competence in aligned areas, will allow the new entity to focus on research and product development in the most important and fastest growing areas of the exchange technology market, both from an investment and a client perspective. Joining the two businesses also creates cross selling opportunities between services and solutions for the enlarged company as well as benefits for the respective customers as the product portfolios complement each other and strengthens the total offering. In addition, Computershare adds a market presence in 25 countries. This represents a significant opportunity to extend the range of products offered in these markets. Through the acquisition OMX will become the market leader in providing technology solutions to exchanges, clearing organizations and depositories and will be strengthened through the addition of Computershare Markets Technologys highly experienced technology teams in Sydney, Calgary, New York and London. Commenting on the acquisition Magnus Böcker, President and CEO of OMX, said: Adding Computershares strong exchange technology business to our own extends our offer to the global exchange industry considerably and further strengthens our position as providers of efficient technology. I welcome the experts from Computershare to our team and believe that the combination of our respective expertise and experience positions us well to play a leading role in the future of exchange technology that will benefit our clients as well as grow our expanded business. Computershare CEO Chris Morris welcomed the deepening of Computershares relationship with OMX that will come with the transaction and the broader strategic alliance. Like us, OMX is a significant provider of services and infrastructure to a wide range of the worlds financial markets. Already we are seeing opportunities to work together and create value for both companies clients and shareholders, Mr Morris said. Jürg Spillmann, Head of SWX Group Executive Committee and Computershares largest exchange customer commented, SWX Group welcomes this announcement and is particularly pleased with the long-term commitment of OMX to the X-stream trading system, upon which the SWX service is based. We look forward to continuing our working relationship with the team and their new OMX colleagues over the coming years. Under the terms of the Letter of Intent, OMX will acquire Computershare's Markets Technology business by paying approximately SEK 250* million to Computershare in purchase consideration and licensing fees, of which SEK 90 million at completion and the remainder evenly distributed over a five year period. For the 12 month ending June 2005, Computershare's Markets Technology business reported revenues of approximately SEK 100 million. Based on operational levels of 2005, OMX estimates that the business will add SEK 25-30 million to operating profit, including immediately realized cost synergies but excluding transaction related depreciation. The transaction is expected to generate cost and revenue synergies and is expected to be immediately earnings enhancing for OMX. The final agreement is expected to be signed in December and the transaction, which is subject to necessary approvals and customary conditions, is expected to be concluded by year-end and the business consolidated by OMX as of January 1, 2006. Lenner & Partners is acting as financial advisor to OMX in connection with the acquisition. *Financial information converted from AUD to SEK at a SEK/AUD exchange rate of 6. NOTE TO EDITORS: A media and analyst conference call will be arranged today at 11.30 CET. Please call +46 8 686 70 81 and state password OMX to participate in the conference, where Magnus Böcker, CEO OMX, will present the acquisition. For more information, please contact: Magnus Böcker, President and CEO +46 8 405 66 44 Anna Rasin, VP Marketing & Communications +46 8 405 66 12 Charles Palmer, Financial Dynamics +44 207 831 3113 PDF Presentation for conference call
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