SunGard moves to acquire GL Trade

SunGard moves to acquire GL Trade

US fintech giant SunGard has made a binding offer to acquire a majority 64.51% stake in French dealing systems vendor GL Trade at a price of EUR41.70 per share.

The EUR41.70 offer represents a 24% premium to the stock's closing price of yesterday. The deal values the Paris-listed vendor at around EUR400.7 million.

GL Trade said in June that shareholders in its holding company Financière Montmartre - which is owned by Nyse Euronext along with GL Trade founders Louis-Christophe Laurent, Pierre Gatignol and Frédéric Morin - were considering "strategic options" for the business, including "withdrawing their participation".

In today's statement SunGard says it has entered into final discussions with GL Trade's main shareholders about acquiring the majority stake.

The US firm says it will buy the Financière Montmartre holding company, which is owned by shareholders that own around 5.3 million shares in the vendor. At the same time SunGard will buy 900,032 shares held directly held by the main shareholders.

In accordance with French regulations, immediately following completion of this first transaction SunGard will launch an all-cash tender offer for the remainder of GL Trade's share capital at the same price of EUR41.70 per share.

Commenting on the acquisition, GL Trade co-founder and executive chairman, Pierre Gatignol, says: "With the current consolidation of the exchange industry, GL Trade would be better positioned to pursue its strategic objectives and serve its customers as part of SunGard, particularly given SunGard's footprint in North America."

GL Trade shares jumped on news of SunGard's offer, rising over 20% to EUR40.36 in morning trading.

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