TIDMSOG
RNS Number : 8956B
StatPro Group PLC
07 April 2017
7 April 2017
StatPro Group plc
StatPro to acquire UBS Delta
StatPro Group plc (AIM:SOG, "StatPro", "the Group"), the AIM
listed provider of cloud-based portfolio analysis and asset pricing
services for the global asset management industry, has agreed to
buy from UBS, its risk and performance analytics service, UBS
Delta, for approximately EUR13 million in cash, paid over three
years.
UBS Delta will enable StatPro to extend its risk and performance
analytics service from the middle office to the front office of
asset managers.
The acquisition is phased over three to five years as StatPro
incorporates UBS Delta's functionality into its flagship product,
StatPro Revolution.
Throughout the transition, and until StatPro has fully
integrated UBS Delta's functionality, UBS will continue to operate
and support UBS Delta for its clients.
Highlights
-- Total consideration of EUR13 million in cash over three
years, including initial payment of EUR8.7 million
-- UBS Delta has annualised recurring revenues of approximately GBP14.5 million
-- Proforma annualised recurring revenue ("ARR") of combined operations of over GBP53 million
-- Adjusted EBITDA from acquisition expected to be GBP2.0
million to GBP2.5 million in first 12 months
-- Expected to enhance Group adjusted EPS in 2017
-- UBS Delta is a cloud-based solution complementing StatPro Revolution
-- Increases StatPro's SaaS and cloud-based services to over 80% of software ARR
-- Enhances StatPro's risk services for front office
-- Provides upgrade path to StatPro Revolution for UBS Delta clients
Justin Wheatley, StatPro CEO, commented:
"This earnings enhancing acquisition transforms our scale and
capabilities. It will also enable us to build a bigger business
faster and, through our operational gearing, improve our
profitability.
"We will have a significantly enhanced product capability for
the front office and will materially benefit from being able to
access UBS Delta's clients - the majority of which are new to
StatPro.
"The award winning UBS Delta platform will be maintained for up
to the next five years while we incorporate the unique UBS Delta
functionality into our flagship cloud platform, StatPro
Revolution."
Hishaam Caramanli, Global Head Securities eCommerce, UBS
Investment Bank commented:
"We are incredibly proud of UBS Delta, our award winning risk
and performance analytics platform, and the talented team of people
that provide this service to our clients.
"We are delighted to have entered into a transaction with
StatPro, a leader in this market with the technical experience and
growth capital to enhance the platform and create a next generation
experience for our clients."
Conference call:
There will be an analyst conference call at 8.30am today -
please contact Harry Ashcroft at Harry.Ashcroft@instinctif.com or
telephone 020 7457 2020 for details.
Enquiries:
StatPro Group plc
Justin Wheatley, Chief +44 (0) 20 8410
Executive 9876
Andrew Fabian, Finance
Director
Panmure Gordon - Nomad
and Broker
Corporate Finance - Freddy +44 (0) 20 7886
Crossley / Fabien Holler 2500
Corporate Broking - Tom
Salvesen
Instinctif Partners
Adrian Duffield / Kay Larsen +44 (0) 20 7457
/ Chris Birt 2020
Goldenhill International M&A Advisors initiated this
transaction and acted as financial and strategic advisor to
StatPro.
Terms of the transaction
StatPro will pay UBS a total of EUR13.05 million as follows:
EUR8.70 million on first closing, EUR1.74 million on the second
anniversary of first closing and EUR2.61 million on the third
anniversary of first closing. First closing is expected to occur in
mid-May 2017.
UBS Delta has annualised recurring revenues of approximately
GBP14.5 million.
StatPro expects annual revenue levels to remain broadly similar
for 2017 and will incorporate UBS Delta revenues from first closing
(expected to be mid-May 2017).
StatPro expects the acquisition to be earnings enhancing in
2017.
The consideration will be entirely funded by additional
committed facilities provided by Wells Fargo Capital Finance, which
have been increased to GBP41.1 million, of which GBP33.6 million
are committed for a new five year term to April 2022.
Under the terms of the agreement, StatPro will take on the
employees and contractors of UBS Delta (of which there are
currently 54 in aggregate) and associated costs during the first
phase as well as the UBS Delta revenue.
Clients of UBS Delta
UBS will continue to operate and support the UBS Delta service
for its clients until StatPro has enhanced its award winning
performance and risk platform, StatPro Revolution, so that it
reaches functional parity with the UBS Delta service.
It is estimated that this process will take approximately three
years. Following that, UBS Delta clients will be able to migrate to
StatPro and upgrade to the newly enhanced service.
UBS Delta capabilities
UBS Delta has proven to be best in class for risk for asset
managers with a special focus on fixed income attribution and risk.
The quality and precision of the analysis provided makes UBS Delta
stand out. The strong team of professionals that are behind the
service have the knowledge and experience to make a real difference
to StatPro. The way risk and performance is used in the front
office of asset managers is functionally different to the way the
middle office works, which is StatPro's traditional market. Adding
UBS Delta's capabilities broadens StatPro's potential market.
About StatPro
StatPro is a global provider of award winning portfolio
analytics solutions for the investment community. The Group's
cloud-based platform provides vital analysis of portfolio
performance, attribution, risk and compliance. This multi-asset
class analytics platform helps StatPro's clients increase assets
under management, improve client service, meet tough regulations
and reduce costs.
The Group's integrated and global data coverage includes over
3.2 million securities such as equities, bonds, mutual funds, FX
rates, futures, options, OTCs, sector classifications and much else
besides. StatPro also covers most families of benchmarks including
MSCI, FTSE, Russell, NASDAQ and the open source Freedom Index.
StatPro has grown its Annualized Recurring Revenue from less
than GBP1 million in 1999 to around GBP53 million following the
acquisition of UBS Delta. The Group has operations in Europe, North
America, South Africa, Asia and Australia, with hundreds of clients
in 38 countries around the world. Approximately 80% of recurring
revenues are generated outside the UK. StatPro Group plc shares are
listed on AIM.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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