StatPro Group PLC (AIM: SOG), provider of portfolio analytics and data software for the asset management industry, said it has notified the minority shareholders in SiSoft Sarl, a business in which StatPro currently owns a 51 percent stake, that it plans to exercise its call option to acquire the remaining 49 percent with effect from 30 June 2010.
It currently estimates it will pay a cash amount of less than €1.5 million for the stake.
SiSoft has developed an advanced web-based Composites product which is integrated into StatPro Composites.
In June 2004, StatPro invested in the majority stake in SiSoft, subscribing €150,000 of seed capital for the investment. Under the terms of the agreement, StatPro received an option to acquire the minorities exercisable between 31 March 2009 and 31 December 2014, with the minority shareholders having a corresponding option to sell during the period.
StatPro Composites is supplied to more than over 100 of the largest asset managers in the world. The product enables asset managers to achieve and maintain compliance with GIPS, or Global Investment Performance Standards. Fund managers are under increasing pressure to provide GIPS compliant performance statistics and StatPro's systems also assist in the efficient and effective distribution of performance data and statistics within firms.
The acquisition of the SiSoft stake in 2004 enabled StatPro to minimise the development risk of the second generation platform for StatPro Composites. SiSoft has delivered a product that has been in production for around three years with over half of StatPro’s clients upgraded to it.
It is now integrated into StatPro Seven, StatPro's new SaaS (Software as a Service) solution for asset managers. The board believes that it is in the best interests of StatPro shareholders to exercise its option now to acquire the remaining 49 percent of SiSoft.
To determine the price under the option, the enterprise value of SiSoft will be derived by applying a formula based on a percentage of the revenue within SiSoft adjusted for the net assets of SiSoft on the exercise date. The amount, payable in cash, will be calculated shortly after 30 June 2010 and is currently projected to be less than €1.5 million.
Justin Wheatley, CEO of StatPro commented: "We placed great faith in SiSoft and Laurent Delrieu and his team have delivered an outstanding product for our clients. Bringing the team fully into the StatPro Group strengthens our ability to extend the reach and capacity of StatPro Composites in its new form in StatPro Seven. GIPS plays a vital role in the investment management industry and we foresee continued success for the product."
Only last week, StatPro announced it has secured a significant three-year contract worth more than US$1m from a prominent Asian bank for its newly launched SaaS platform, StatPro Seven. According to StatPro, its new Asian client chose the product specifically because the company was able to offer a combined analytics platform with the required data feeds on a SaaS basis thus minimising their IT costs and ensuring first class support.
StatPro has grown its recurring revenue from less than £1 million in 1999 to £28.4 million in 2009. StatPro floated on the London Stock Exchange in May 2000 and transferred its listing in June 2003 to AIM. The group has operations in Europe, North America, South Africa and Australia, with approximately 75% of recurring revenues being generated outside the UK.
Disclosure: The author holds no positions in the company