19th June 2002, London: Cognotec, the worldâs leading provider of foreign exchange dealing and connectivity solutions, has received a strategic investment of US$14.5 million (Euro 16 million).
The private equity arm of Standard Chartered Bank, FinVentures, is providing two-thirds of the new funds, with the remainder of the investment coming from existing investors. The new investment is to fund the continued expansion of Dublin-based Cognotecâs global business. FinVentures will become a minority shareholder and join the board.
This is the first investment commitment to Cognotec from outside the G3 zone, and is particularly significant with Standard Charteredâs history and depth of knowledge in the high growth markets of Asia, including China and India and other fast growing economies, as well as leadership in the foreign exchange trading business. The Bank is one of the worldâs leading emerging markets banks with dealing rooms in 42 countries and is one of the 68 banks deploying Cognotecâs world-beating AutoDeal trading technology suite.
Brian Maccaba, founder and Chief Executive of Cognotec said: "This investment commitment reinforces our belief that there are still many opportunities in the wider global market for Cognotecâs expertise in automated and e-commerce enabled foreign exchange and money market trading tools. This agreement presents Cognotec with enhanced strategic opportunities to enable banks worldwide - particularly in fast developing regions - to provide easy and cost-effective connectivity both to their clients and to multi-user portals."
Alistair Morrison, Managing Director of Standard Chartered Bank Private Equity Ltd said: "As the private equity arm of Standard Chartered, FinVentures has a knowledge and enthusiasm for the financial services space. Cognotec has long led the field in the provision of automated dealing software. It was the first vendor to fully appreciate the advantages offered by web-based applications and is now the only provider offering a comprehensive range of solutions appropriate for all sizes of financial enterprise."
Mr Morrison also added that Cognotec currently has a significant traction with over 60 international banks as customers. Its unique vision of the foreign exchange marketplace is consistent with the private equity unitâs mission to provide expansion capital to established companies that have significant growth opportunities.
Mike Rees, Group Head of Global Markets, Standard Chartered said: "We are committed to providing our customers with innovative foreign exchange dealing solutions and Cognotec clearly leads the way in the industry. The effectiveness and robustness of Cognotecâs services have served us, and in turn our customers, very well. We are delighted with the opportunity to participate in the expansion of its services to the global financial community. "