Tuesday March 12, 11:11 am Eastern Time
Press ReleaseSOURCE: NYFIX, Inc.
NYFIX, Inc. to Acquire Javelin Technologies, Inc.
STAMFORD, Conn.--(BUSINESS WIRE)--March 12, 2002--NYFIX, Inc.
(NASDAQ: NYFX - news) announced today it has signed a definitive agreement to
acquire Javelin Technologies, Inc., thus bringing together two
industry leaders in electronic trading technology.
NYFIX will finance the transaction with a combination of
approximately $11,000,000 cash and NYFIX common stock with a value of
approximately $44,000,000. In addition, NYFIX has negotiated an
earn-out based on Javelin's 2002 revenues. The transaction is
scheduled to close on March 31, 2002.
Javelin Technologies, Inc., widely known as the pioneer in FIX
(Financial Information eXchange Protocol) technology, counts over
1,000 installations at more than 300 leading buy and sell-side
institutions, exchanges and ECNs, including over 50 clients in Europe
and 20 in Asia.
The acquisition of Javelin complements and expands NYFIX's
existing business model, while greatly widening the reach of the NYFIX
Network. Both companies are market leaders and compliment each other
in the equity and derivatives exchange access automation market. Where
Javelin possesses the leading market-share in the buy-side
institutional market for electronic order routing enabling technology,
NYFIX maintains a leading market share in the broker/dealer end of the
``In our ambition to create a seamlessly connected electronic
environment for the different participants in the market - this
acquisition represents the perfect match for our two companies and our
respective clients trying to interconnect with each other and multiple
market centers. We intend to leverage obvious service combinations and
cross-selling opportunities in our core business models. We also see
this as a shortcut to engage a portion of the Javelin customer base in
our transaction based offerings, as it relates both to our Transaction
Services group and NYFIX Millennium,'' said Peter Kilbinger Hansen,
Chief Executive Officer of NYFIX, Inc.
Some of NYFIX's key considerations for the acquisition include:
increased connectivity to the buy-side institutional market;
consolidated product offering; cross-selling of core products and
transaction services; and a single point of electronic exchange access
across all major domestic and international equity and derivatives
exchanges. The plan is to embed Millennium capabilities in Javelin
products which should reduce implementation time of the NYFIX
Millennium ATS throughout the financial industry.
``We are very excited to join NYFIX. Combining forces creates an
unmatched offering of trading platforms, execution services and
connectivity solutions to best serve the financial industry. With our
firms' collective expertise in FIX, superior trade communication
products and robust infrastructure, we believe there is significant
opportunity to grow in this marketplace,'' commented George Kledaras,
Chairman and CEO of Javelin Technologies.
The acquisition is expected to generate a number of cost synergies
and improve the Company's market share in the electronic trading
space. Javelin, headquartered in New York City with offices in San
Francisco, London, Paris and Hong Kong, will operate as a wholly-owned
subsidiary of NYFIX, Inc. Javelin's founder Kledaras, who is widely
credited as one of the leading pioneers and proponents of FIX
technology, will be nominated for membership to the NYFIX Board of
Directors. Current Javelin President and COO, John Coulter, will
maintain responsibility for business operations.
NYFIX, Inc. (NASDAQ: NYFX - news), through its subsidiaries, provides
electronic trading systems, industry-wide trade routing connectivity,
straight-through processing and execution services and systems to the
global equities and derivatives financial markets.
NYFIX USA, LLC develops real-time order management trader
workstations, exchange automation systems, trade order and execution
routing and STP solutions for brokerage firms and other financial
institutions. NYFIX USA operates the NYFIX Network, the industry's
largest FIX order-routing network, processing between 500 million to
1.2 billion shares of U.S. listed equity securities on a daily basis.
NYFIX USA is a pioneer in the adoption of the FIX protocol and all its
products are FIX-compliant.
NYFIX Transaction Services, Inc., a recently acquired
broker-dealer, has a pending membership application filed with the
NASD. NYFIX Transaction Services, Inc. will provide execution and
smart order routing solutions primarily to domestic and international
broker-dealers and specialized trading firms.
NYFIX Millennium, LLC, the broker-dealer subsidiary of NYFIX,
Inc., is an Alternative Trading System which provides a real-time,
anonymous automated matching system for equity trading. NYFIX
Millennium leverages the NYFIX network's large order routing share
volume to provide a more efficient liquidity source for the financial
community. Investors in NYFIX Millennium, LLC include NYFIX, Inc., ABN
Amro, Banc of America Securities, Deutsche Bank, JP Morgan, Lehman
Brothers, Morgan Stanley, Sanford C. Bernstein & Co., SG Cowen
Securities Corp., UBS Warburg and Wachovia Securities.
NYFIX Overseas, Inc. specializes in electronic trading solutions
for the derivatives markets and develops order management workstations
and exchange interface systems, supporting trading on more than 20 of
the world's leading international derivatives exchanges. NYFIX
Overseas has customers in Europe, the U.S. and the Far East.
Javelin Technologies, Inc., founded in 1996, with over 1,000
installations at more than 300 major buy and sell-side institutions,
securities clearing houses, hedge fund managers, exchanges and ECNs
worldwide, is a leading supplier of electronic trade communication
technology and the leading provider of Financial Information Exchange
(FIX) technology. Javelin solutions provide better trading through
universal connectivity, streamlining workflow and eliminating the high
cost and risk of developing proprietary network links and protocol
implementations. Winner of the 2001 Deloitte & Touche Shooting Star
award for New York's fastest-growing technology company, Javelin's
electronic trading solutions power hundreds of clients including
Chicago Board Options Exchange (CBOE), Morgan Stanley Dean Witter,
Fidelity Management Research, the American Stock Exchange, Robertson
Stephens, Instinet, Nasdaq Japan, Market XT/Tradescape, and Yahoo!.
For more information on Javelin's electronic trading solutions, please
This press release contains certain forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, which are intended to be covered by the safe harbors created
thereby. Investors are cautioned that all forward-looking statements
involve risks and uncertainty, including without limitation, the
ability of the Company to market and develop its products. Although
the Company believes that the assumptions underlying the
forward-looking statements contained herein are reasonable, any of the
assumptions could be inaccurate, and therefore, there can be no
assurance that the forward-looking statements included in this press
release will prove to be accurate. In light of the significant
uncertainties inherent in the forward-looking statements included
herein, the inclusion of such information should not be regarded as a
representation by the Company or any other person that the objectives
and plans of the Company will be achieved.
NYFIX, Inc., New York
Jennifer Plaia, 212/809-3542
Jed Hamilton, 917/783-5209