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Acquisition of STB Systems Ltd Lombard Risk Management
Plc ('Lombard Risk' or 'the Company') Lombard Risk Management plc, the provider of risk systems and independent valuation services, has agreed to acquire STB Systems Ltd, a leader in compliance automation solutions, with world class central bank regulatory reporting, anti money laundering and other compliance software systems. Lombard Risk will pay an initial consideration of £2m, of which £1.27m is payable in cash and £0.73m will be satisfied through the issue of 7,326,779 new ordinary Lombard Risk shares at 10p per share plus an additional earn-out of up to a maximum of £1.0m payable in shares depending on the performance of STB Systems over the period from 1st June 2005 to 31st March 2006. Application will be made for the new ordinary shares being issued as part consideration for the acquisition of STB Systems to be admitted to AIM. It is expected that dealings in the new ordinary shares will commence on 6 September 2005. The Company will acquire the entire issued share capital of STB Systems on completion, which is expected within 7 days. STB Systems’ sales for the year ending 30 November 2004 were £2.78m. During this period losses of STB Systems before taxation were £ 0.29m. In the UK approximately one third of all banks, along with building societies and investment and other firms, use STB products to report to the Bank of England and to the Financial Services Authority. STB Systems has developed comprehensive compliance systems, supplying industry-leading products STB-Reporter (regulatory reporting including Basel II), STB-Detector (financial crime detection) and STB-GlobalView (management systems and controls). STB Systems, led by Michael Thomas, CEO, will provide Lombard Risk with significant market share in the compliance automation market and considerable expertise in the areas of regulation, anti money laundering and compliance. Lombard Risk will fully exploit STB Systems’ capabilities, adding significant competitive advantage in terms of their existing business relationships and specialist expertise. Commenting on the acquisition, John Wisbey, Chairman and Chief Executive of Lombard Risk said: "We are delighted to welcome STB Systems into the Lombard Risk Group. They have an excellent client base, and this acquisition significantly expands our activities in the area of regulation and compliance, allowing us to offer an even more comprehensive offering to our clients and further expand our marketplace opportunities". Enquiries: Lombard Risk Management plc: STB Systems Ltd Click here to email Lombard Risk's Investor Relations team Notes to Editors Lombard Risk Lombard Risk Management plc has an extensive foundation of business knowledge and 15 years of experience in providing trading and risk management systems to the financial markets. It provides software and independent valuation services that allow customers to value and manage risk on a wide variety of financial instruments with a primary focus on interest rate and credit derivative markets. Headquartered in London, and with offices in New York, Hong Kong and Cape Town, the company’s client list contains over 20 of the top 50 banks in the world and many of the leading names in the hedge fund industry. The company was admitted to AIM, the London Stock Exchange’s specialist market for growth companies, in September 2004, and has the ticker symbol LRM. STB Systems STB Systems has built its reputation as a world leader in central bank reporting solutions, with world class regulatory, anti money laundering and compliance software systems, delivering automation solutions for hundreds of leading international institutions. From offices in London, New York, Hong Kong and Singapore, STB resolves critical issues simply, securely and reliably thanks to the functionality and user friendliness of its products. STB’s leading regulatory, anti money laundering and compliance systems STB-Reporter, STB-Detector and STB-GlobalView are perfectly placed to satisfy finance industry requirements arising from challenging regulatory demand in areas such as strengthening capital reporting and increased financial crime legislation. Web sites |
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