The Davidge acquisition will provide GL TRADE with a state-of-the-art order routing system covering all US equities and options markets, as well as middle office tools for reporting and compliance. Everyday, Davidge software processes approximately 10 percent of the US equities volume and 40 percent of the US listed options volume. Integrating the Davidge offering with GL TRADE’s extensive product line and global connectivity will increase the firm’s market share in the US equities and options markets, and deliver a global offering to customers worldwide.
Based in New York, Davidge has been providing its clients with front and middle office solutions for the US markets for more than 20 years. Davidge’s products and employees will be integrated with GL TRADE under the direction of Gerard Varjacques, CEO of GL TRADE Americas.
“The Davidge product suite aligns perfectly with our strategy for the US markets,” said Varjacques. “We will benefit from the US market expertise of the Davidge employees, as well as reducing our development cycle and increasing functionality to our US equities, options, and middle-office line of products. We expect the preexisting synergies between our two organizations will allow for a smooth and rapid integration.”
“As S1 continues to execute on its strategy of providing integrated front-office applications for banks and insurance providers, we determined that the Davidge business can be more appropriately leveraged by a company singularly focused on providing solutions to the capital markets industry,” said Greg Orenstein, vice president of corporate development at S1 Corporation. “We believe Davidge will fit nicely with GL TRADE’s wide range of front-to-back office trading solutions.”
The transaction is expected to close in early November 2004. The acquisition is expected to increase GL TRADE Americas’ revenues to 15% of global GL TRADE revenue in the short term. Terms of the deal were not disclosed.
“Adding Davidge’s products to GL TRADE’s existing offerings will both support our global growth strategy and enhance our product suite for the US markets,” said Pierre Gatignol, CEO of GL TRADE Group. “GL TRADE is known worldwide as a specialist on electronic markets. As the US markets move toward an electronic future, our expertise as a worldwide provider of end-to-end trading solutions and Davidge’s products will reinforce GL TRADE’s position in the US and around the globe.”
