The acquisition provides strategic value to Stockgroup and its shareholders. Stockgroup gains:
â¢ A proven set of wireless financial products for migration onto Stockgroupâs platform, which saves Stockgroup significant development costs and go-to-market time
â¢ A large customer-base through which Stockgroup can leverage its existing product-line. Customers include Citigroup, HSBC, Merrill Lynch, Morgan Stanley, Barclays, Bear Stearns and Credit Suisse First Boston
â¢ Expected to add in 2007, US $6 million in profitable revenue
â¢ Distribution agreements with Reuters, one of the worldâs largest financial information providers, and Hutchison, a global 3rd generation telecommunications provider
âWireless devices like the Blackberry and those with Windows Mobile 5 have become critical extensions of the desktop computer and essential to active investors and traders. This acquisition helps Stockgroup gain the proven wireless technology and infrastructure identified on our product roadmap, and enables us to provide value to our customers with an industry leading product,â said Marcus New, President and CEO of Stockgroup. âThrough this transaction, we are exceptionally well-positioned to provide financial information to mobile phones and devices.â
Stockgroup has agreed to pay 1.5 million restricted shares and assume the assets and liabilities of the acquired business. Up to an additional US $500,000 may be paid if gross profit for the year 2007 meets or exceeds an identified threshold.