Renaissance was formed to commercialize a state of the art NASDAQ Trading Platform. NYFIX has initially acquired an 18% minority interest and through certain options has secured an opportunity to acquire a controlling interest at a later date.
"This represents a unique opportunity to bring a solid and well-supported offering to a market very much in need," said Peter Kilbinger Hansen, NYFIX President and Chief Executive Officer. "NYFIX believes by investing in a talented and experienced team, we have circumvented much of the heavy lifting involved in the development cycle. The NYFIX data center and Network infrastructure will be leveraged to provide cost-efficient and reliable distribution for the product. The system is both FIX compliant and platform compatible with NYFIX's listed product suite," commented Mr. Hansen.
"The NASDAQ Market has been a moving target and thus developing a complete market making and workstation system is not for the faint-hearted," said Ed Brandman, CEO of Renaissance. "Many traders feel restricted by current available offerings and are seeking viable alternatives. We believe we have developed the premier order management system for the NASDAQ market and the partnership with NYFIX creates all kinds of synergies for ourselves and our prospective customer base," said Mr. Brandman.
While reporting a consolidated loss last quarter as a result of funding several new efforts, NYFIX said that its core business has continued to be profitable and all of its other new businesses have gained traction during the 3rd quarter. NYFIX says it is entering the 4th quarter with a significant backlog and a number of signed deals. "We have plenty of cash and cash equivalents on hand and are very comfortable with this investment, as we see all of our businesses making strong progress. We expect to generate cash from operations in the 4th quarter and throughout 2003," said Hansen.
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