NOVEMBER 16 2012
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.
For further information, please contact:
Peter Melbi, Chairman of the Board, Neonet AB
Phone: +46 70 891 48 37
John Ashdown, Managing Partner, Hay Tor Capital LLP
Phone: +44 20 7479 4988
Per E. Larsson, Chairman of the Board, Orc Group AB and Cidron Delfi Intressenter AB
Phone: +46 8 440 50 69
Katarina Janerud, Communications Manager,
NC Advisory AB, advisor to the Nordic Capital Funds
Phone: +46 8 440 50 69
Neonet offers professional market participants flexible, independent and transparent execution services based on advanced trading software solutions. Neonet's services include a comprehensive execution management system, advanced trading algorithms, smart order routing, market data services and a trading desk operated by qualified execution specialists. Neonet does not engage in proprietary trading or any other financial activity that could result in a potential conflict of interest. Neonet serves clients in over 20 countries. Clients include banks, brokerage firms, institutional investors, hedge funds and asset managers. For further information, visit www.neonet.com.
About Hay Tor Capital
Hay Tor Capital is a specialist financial services investor with exceptional securities expertise in global markets and a clear understanding of the technological and operational needs in financial markets undergoing significant change. The Partners have many years' experience of building, operating and driving performance at leading equities and capital markets firms. Hay Tor Capital was established in 2011 by John Ashdown, Managing Partner, following a twenty year career at Goldman Sachs, most recently as Partner in charge of European equities trading.
About Nordic Capital
Since the start in 1989, Nordic Capital Private Equity Funds have invested in large and medium sized companies, primarily in the Nordic region. Nordic Capital creates value in its investments, through committed ownership and by targeting strategic development and operational improvements. The funds invest in companies in Northern Europeand in selected investment opportunities internationally. The most recent fund is Nordic Capital Fund VII with EUR 4.3 billion in committed capital, principally provided by international institutional investors, such as pension funds, asset managers and insurance companies. Nordic Capital Funds are based in Jersey, Channel Islands, and are advised by the NC Advisory companies in Sweden, Denmark, Finland, Norway, Germanyand the UK.