9th Aug 2005 16:01
Lombard Risk Management PLC09 August 2005 9 August 2005 Lombard Risk Management plc Sale of Business Lombard Risk Management plc (the "Company"), provider of risk systems andindependent valuation services, is pleased to announce the sale by Lombard RiskSystems Limited ("Lombard Risk"), a wholly-owned subsidiary of the Company, ofits ValuSpread business to Fitch Ratings Ltd. The maximum consideration payableto the Company amounts to £6m in cash plus a further £625,000 for deferredincome; £4m of the consideration is payable on completion with up to a further£2m payable upon fulfilment of certain conditions. Completion of thetransaction is expected within 14 days. The ValuSpread business is a leading supplier of precise and regular market dataon credit default swaps to the financial industry. It has grown significantlysince its launch in 1999, and supplies data and related analytics, on a dailybasis, for both plain vanilla instruments and complex structured credits toleading market makers and other sell and buy side organizations. This data isused to meet internal and external regulatory requirements. The transaction will also provide Lombard Risk with continued long-term accessto high quality consensus data from the ValuSpread service for use in itsindependent valuations business through a long-term data subscription from FitchRatings. Commenting on the sale, John Wisbey, Chairman & Chief Executive of Lombard RiskManagement plc, said: "ValuSpread has been a profitable business, contributingaround £570,000 of marginal profit to the Group for the year to March 2005,which we believe has significant potential for growth and synergisticdevelopment within the Fitch Ratings business. We see tremendous growthopportunities in the areas of specialist financial software and independentvaluation services, and the capital raised from this transaction will provideadditional capability for the Lombard Risk Group to execute its strategic planand aggressively pursue those opportunities." Enquiries Lombard Risk Management plcJohn Wisbey, Chairman & CEOTel: +44 20 7384 5000 Noble & CompanyAlasdair Robinson, DirectorTel: +44 20 7763 2200 Notes to Editors Lombard Risk Lombard Risk Management plc has an extensive foundation of business knowledgeand 15 years of experience in providing trading and risk management systems tothe financial markets. It provides software and independent valuation servicesthat allow customers to value and manage risk on a wide variety of financialinstruments with a primary focus on interest rate and credit derivative markets. Headquartered in London, and with offices in New York, Hong Kong and Cape Town,the company's client list contains over 20 of the top 50 banks in the world andmany of the leading names in the hedge fund industry. The company was admitted to AIM, the London Stock Exchange's specialist marketfor growth companies, in September 2004, and has the ticker symbol LRM. Fitch Group Fitch Group, Inc. is the parent company of Fitch Ratings, Fitch Training andAlgorithmics. Fitch Ratings is a leading global rating agency committed toproviding the world's credit markets with timely and prospective creditopinions. Fitch Ratings is dual-headquartered in New York and London, operatingoffices and joint ventures in more than 50 locations and covering entities inmore than 80 countries. Fitch Group is a wholly owned subsidiary of Fimalac,S.A., an international business support services group listed and headquarteredin Paris, France. Websites www.lombardrisk.com www.fitchratings.com This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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