Linedata Services announces an agreement to acquire the operations of US-based Global Investment Systems ("GIS"), which specializes in back-office software solutions for the mutual fund and hedge fund industries.
Founded in 1992, GIS is a leading supplier of specialized investment, shareholder and partnership accounting software to fund managers and administrators in the US, and international off-shore markets. Through its integrated product line that includes MFACTÂ®, MSHAREÂ® and MPARTNERÂ®, GIS is able to service more types of fund structure than other software providers. The company has recently completed major R&D investments in its systems that enable them to compete with true âBest-of-Breedâ products in all segments of the market, including the largest fund administrators.
Headquartered in Hackensack, New Jersey with offices in Chicago and Dublin, Ireland, GIS services more than 4500 mutual funds and other investment portfolios through a global client base of over 120 customers in 21 countries, including the US, Ireland, the Caribbean and Eastern Europe.
Anvaraly Jiva, CEO and Chairman of the Executive Board of Linedata Services, said; âWe are very pleased to merge with GIS. Together, with our existing Best of Breed back office systems, Icon and Chorus, we now have an exhaustive front-to-back offering which spans the requirements of all market segments, including the North American market. Moreover, the operation also means additional fantastic opportunities in terms of cross-selling, particularly as regards LongView Trading our front-office solution which is increasingly popular with the worldâs key fund managers.â
Nigel Wilson, CEO of GIS, added: âWe are happy to become a part of Linedata Services and look forward to working together to leverage our combined products and services in response to the growing market demand in the investment funds industry.â
With recurrent revenues accounting for 90 percent of its activity and bolstered by a strong sales dynamic, GIS looks set to realize revenues of over USD 11 million in 2005, enjoying organic growth of over 10 percent for an EBITDA margin of 13 percent, expected to improve during financial year 2006 to a level closer to the overall profitability standards of Linedata Services.
Financed entirely in cash and structured as a purchase of the assets of Global Investment Systems L.P., the acquisition, which will be finalized in the coming days, will have an immediate positive impact on the Groupâs net earnings per share.