The proposed acquisition of Strategic (which is subject to due diligence inquiries) marks a significant further stage in the Exchange's strategy of developing its electronic platform for shipbrokers, balticexchange.com. Launched a year ago for its shipbroking members and other subscribers, the electronic platform is a key part of the Baltic's strategy to provide a truly international exchange.
This agreement follows discussions with the shareholders of Strategic and with Lloyd's Register- Fairplay (LR-F), the maritime publishing organisation, which withdrew from its interest in Strategic.
Speaking today, Peter Kitching, Chairman of the Exchange said: " The Exchange's acquisition of Strategic will enable us to implement our strategy to offer a total information technology package to shipbrokers and other subscribers. This is an exciting opportunity and enables us to build upon the foundations we established a year ago with the launch of balticexchange.com."
Welcoming the agreement, Peter Rygaard Andersen of Strategic said: " I am delighted that we have reached this agreement with the Baltic Exchange. Many of its members and subscribers to balticexchange.com are long-standing customers of Strategic and this agreement secures the continuity of supply of Strategic desktop systems and their further development. The complementary expertise of the two organisations will constitute a formidable combination in the international market place."
Jim Buckley, Chief Executive of the Baltic explained: "This acquisition is important to the future development of the Exchange internationally and we are confident that our ability to develop a new suite of software while at the same time enhancing the level and quality of support for our existing electronic platform will make our products and services extremely attractive. The Exchange plans to invest a significant sum to support new software development. The Exchange's acquisition will also safeguard this important channel of distribution for data provided by LR-F. That data is also used in the Baltic's e-platform."
On completion of the transaction, Strategic will become a wholly-owned subsidiary of The Baltic Exchange Limited and will offer its products and services to both members and non-members of the Exchange.
The Exchange has pioneered the use of internet - based technology for use by its members, shipbrokers and the shipping industry generally and launched its first system in April 1997. In August last year it launched balticexchange.com which offers users access to: an electronic trading " Floor" enabling members and other subscribers to search for and match available ships with available cargoes on a worldwide basis; a full range of shipping freight market information published daily by the Exchange together with a list of vessels for which charters have been fixed; and a members' area.
