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Hay Tor Capital LLP, KAS BANK N.V. and Neonet’s management will together acquire a majority shareholding in the independent execution service provider Neonet from Nordic Capital Fund VII. This forms a unique consortium of owners with financial expertise and extensive industry knowledge, their backgrounds covering all aspects of securities trading from front end technology to trade processing.
Neonet is at the forefront of the development of algorithmic trading at a time when financial markets are becoming increasingly electronic. The company offers institutional investors and other financial market participants flexible, independent and transparent execution services based on advanced trading software solutions, serving clients in over 20 countries.
“Neonet has a widely acknowledged expertise in the provision of electronic trading and brokerage services across European markets. Hay Tor Capital, as the majority investor, and our partners believe that new regulation and structural changes in markets are driving increased demand for the services which a dynamic and focused firm like Neonet provides to its customer base,” says John Ashdown, Managing Partner at Hay Tor Capital LLP.
“The combination of Hay Tor Capital, a specialist financial services investor; KAS BANK, specialized in wholesale securities services; and Nordic Capital will contribute greatly to Neonet's development, international growth and promote further development of Neonet’s high-quality technology offering and execution services. There is also great potential for collaboration between Neonet and KAS BANK,” says Peter Melbi, Chairman of Neonet.
"We are very pleased to welcome this highly capable consortium as shareholders in Neonet. Following its acquisition of Orc Group, Nordic Capital Fund VII separated the group legally and operationally into its three original parts: CameronTec, Neonet and Orc. Today, this transaction marks the next step forward for Neonet.” says Per E. Larsson, Chairman of Orc Group AB, on behalf of Cidron Delfi Intressenter Holding AB.
KAS BANK will acquire a minority interest of 20 per cent.
Neonet is currently a subsidiary of Cidron Delfi Intressenter Holding AB, a company ultimately owned by Nordic Capital Fund VII. Nordic Capital Fund VII will remain as a minority shareholder in Neonet after this transaction. Previously a part of Orc Group, Neonet has operated as a separate company since March 2012.
The parties have agreed not to disclose the terms of the transaction.
The transaction is conditional on approval by the Swedish Financial Supervisory Authority.
HDR Partners and Sandler O'Neill + Partners, L.P. served as financial advisors to Nordic Capital Fund VII in connection with this transaction. Hay Tor Capital LLP and KAS BANK N.V. were advised by Deloitte LLP.
