GL TRADE posts results in line with the targets set at the beginning of the year

29 August 2008

The Group’s Board of Directors, chaired by Pierre Gatignol, has approved the financial statements for the first half of 2008.

Earnings in line with the objectives set by the Group

GL TRADE posted turnover of €108.2m in the first half of 2008, up 15% compared with last year (+22% at constant exchange rates). This figure includes the acquisitions made in 2007 (FNX in March, INFOTEC in July and DECISION SOFTWARE in November). On a like-for-like basis and at constant exchange rates, organic turnover growth was 10%. This growth has been mainly fuelled by Asia, and the Middle-Back Office and Information Services businesses.

Operating profit before goodwill and amortisation increased by 18.1% to €19.6m. The operating margin increased slightly on the level recorded in the first half of 2007. It stood at 18.1% of turnover. This margin is expected to advance during the second half of the year as a result of the business cycle and the progressive improvement in the margins of recently acquired business activities. Net profit rose by 8.7%. In the first half of 2007, it included a capital gain of €1.1m on the disposal of Fermat. Excluding this extraordinary item, net profit would have increased by 19.6%.

Our strategy rewarded

Turbulent markets in the first half of the year have stimulated demand for upgrading internal control procedures and risk management. This boosted demand for Middle and Back-Office solutions.

In spite of difficult market conditions, the company has met its organic growth target objectives thanks to its product and geographic footprint as well as its recurring business model.

Outlook for 2008

First half results and the current order book allow us to confirm our organic growth rate target for 2008 between 9% and 10% at constant rates. The target for operating margin before amortisation of acquisition-related goodwill is 18% to 19% of turnover.

SunGard has announced its intention to acquire GL TRADE

On August 1st, SunGard has made a binding offer to acquire a majority stake in GL TRADE at a price of €41.70 per GL TRADE share. The price offered implies an equity value of €400.7 million for 100% of GL TRADE’s share capital (excluding the effect of stock options).
Should the offer made by SunGard be accepted by the majority shareholders of GL TRADE, the closing of transaction is expected during the fourth quarter of the year, subject to the clearance by the competition authorities in Europe. The information and consultation process of GL TRADE’s workers’ committee is currently in progress.

In accordance with the AMF General Regulation (“règlement général de l’AMF”) and immediately following completion of the transaction, SunGard intends to launch an all-cash tender offer under the simplified procedure (“offre publique d’achat, procédure simplifiée”) for the remainder of GL TRADE’s share capital at the same price of €41.70 per GL TRADE share.

SunGard and GL TRADE’s majority shareholders believe that the transaction would contribute to SunGard and GL TRADE's global growth strategies and would benefit customers of both companies. The product fit is complementary, and GL TRADE’s strengths particularly in trading solutions and market connectivity products in Europe and Asia would complement SunGard’s positions in North America in this space.

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