For immediate release
6 October 2003
STATPRO GROUP PLC
(“StatPro” or the “Group”)
Acquisition of risk management system
In line with its stated strategy to develop a complementary multi-product offering, StatPro Group plc, the leading AIM listed provider of performance measurement solutions for the global asset management industry, is pleased to announce the acquisition of a risk management system. StatPro is subscribing Euro400,000 (approximately £280,000) for a 51% stake in RiskMap srl, (“RiskMap”), an Italian financial software development company.
Background to and reasons for the acquisition
Recent turbulence in the financial markets has shifted fund manager attention to focus not only on returns from equities and fixed income investments, but also the associated risks. StatPro has established a strong track record in the successful integration and development of complementary products and is already a leader in the performance measurement market with its transaction-based, daily, security level equity attribution system. In late 2002 StatPro launched its complementary transaction-based, daily, security level Fixed income attribution system.
It has been the Group’s belief for some time that there is significant demand in the market for an integrated risk and performance analysis solution and a complementary risk management product will enable StatPro to take advantage of this growing market. The Group anticipates interest from both its existing client base and from other portfolio managers globally as they continuously seek to improve their portfolio performance reporting and the analysis of their risk profile.
The risk management system has been developed by the team at RiskMap led by Dario Cintioli, an expert in risk management and reporting techniques, including “Value at Risk”, which provides a monetary measure of the risk of a portfolio. Mr. Cintioli, CEO of RiskMap, has developed the product over three years following many years’ experience working in leading Italian financial institutions. RiskMap reported revenue of Euro400,000 in the year ended 31 December 2002, representing a growth of 30% over 2001, and an operating loss of approximately Euro160,000. RiskMap has seven employees and is based in Milan, Italy.
Acquisition of 51% stake in RiskMap
StatPro is subscribing Euro400,000 (approximately £280,000) for a 51% stake in RiskMap. Under the terms of the acquisition, StatPro has an option to acquire (and the existing shareholders have a corresponding option to sell) the remaining 49%. The option is exercisable between 31 December 2006 and 31 December 2013. To determine the amount payable under the option the value of RiskMap will be derived by applying a formula of one times the annual recurring revenue generated by the RiskMap products globally. This will be adjusted by additional increments for revenue generated in Italy and adjusted for the net assets on exercise of the option. StatPro has also entered into a commercial revenue-sharing agreement whereby StatPro has the worldwide exclusive rights to licence the RiskMap products in return for a fee.
The Italian market
As part of the transaction, RiskMap will promote StatPro’s products in the Italian market, through its existing Milan base and will be renamed StatPro Italia.
Commenting on the transaction Justin Wheatley, Chief Executive of StatPro Group, said: “The acquisition of a risk management solution is an important step forward in our strategy of developing a suite of complementary products for the global asset management industry.
We believe that our new product StatPro Risk Management will be capable of becoming the market leader and represents a low cost and low risk entry into this market. We therefore look forward to a successful collaboration, the benefits of which we expect to see in 2004 and beyond.”
Commenting on the transaction Dario Cintioli, CEO of RiskMap, said: “StatPro has an enviable list of clients in 25 countries and we look forward to working with StatPro and the opportunity to expand the client base for our risk product globally. The transaction represents an excellent opportunity for us to establish a strong global position for StatPro’s Analytics systems.”
– Ends –
For further information, please contact:
StatPro Group plc
|Justin Wheatley, Chief Executive||020 8410 9876|
|Andrew Fabian, Finance Director|
|Dario Cintioli, CEO||+39 02 43317510|
Weber Shandwick Square Mile
|Reg Hoare/Rachel Taylor||+44 (0)20 7067 0700|
StatPro is a leading supplier of performance measurement software for Asset Managers worldwide. With over 140 contracts and a growing portfolio of products,
StatPro is setting the standards for the global asset management industry for innovation and development.
RiskMap is a software development company based in Milan, Italy, with a leading risk management system for portfolio risk analysis.