Patsystems has completed its previously announced acquisition of Mixit Inc, a developer and vendor of sell-side Order Management Systems (OMS) and Execution Management Systems (EMS) for equities and options trading. Under the terms of the agreement, Mixit shareholders will receive $13.7 million in cash and 17.7 million shares of Patsystems stock valued at $6.6 million at closing. Additional consideration of up to $8.1 million could become payable based on financial performance for the year ending March 31, 2012. Marks Baughan Securities acted as exclusive financial advisor to Mixit on the transaction.
“The Marks Baughan team really made this transaction happen,” said Mixit CEO Walter Fitzgerald. “Their detailed knowledge of trading systems and relationships in the trading software community was invaluable in helping us find the ideal partner in Patsystems.”
Mixit has an integrated suite of technology that supports institutional and broker-to-broker-based trading across equities and options. The Mixit routing network encompasses all major buy side; algorithms, exchanges, brokers, crossing venues, and dark pools. Mixit provides scalable electronic, real-time trading solutions, including front, middle, and back-office products, in addition to compliance offerings. Mixit currently has approximately 170 customers, with approximately 800 OMS workstation and 2,500 Financial Information eXchange protocol (“FIX”) connections.
“Mixit has rapidly established itself as a significant vendor in the North American equities OMS market,” said David Webber, Chief Executive Officer of Patsystems. “I am excited by the growth opportunities that the Group will see from repeating Mixit’s success globally and leveraging the combined strengths of our technology and connectivity offerings.”
Mixit adds equities and options capabilities to Patsystems’ existing Asian derivatives and commodities expertise. In addition, there exists an opportunity to generate additional revenue synergies from the distribution of Mixit product through Patsystems’ international sales network and routing of Mixit customer’s futures to Patsystems’ global network of derivatives market connections.
“We are extremely excited to be joining Patsystems. The combination of these two complementary, industry-leading technology firms creates a powerful global offering of products and services. Our mutual customers will benefit from the broad range of products, an international presence, and our combined strength. Patsystems’ existing global footprint along with Mixit’s extensive network provides the infrastructure for our products to be distributed seamlessly worldwide and offer clients access to global multi-asset electronic trading technology,” said Fitzgerald.
For more information on this transaction, please contact:
Jim Marks
President
610.616.3295
jmarks@marbau.com
Christopher Rose
Vice President
610.616.3298
crose@marbau.com
About Patsystems
Patsystems delivers tailored solutions, built from modular components, to enhance derivatives trading performance and trade processing. The Company works in partnership with our customers to deliver robust systems that align with their business strategies. Patsystems’ solutions can range from a plug-and-play module to address a specific issue, to complete high-performance trading systems with global market access. Patsystems operates from a global network of offices covering all major derivatives trading centres. The Company’s shares are traded on the London Stock Exchange’s Alternative Investment Market (AIM).
For additional information please visit www.patsystems.com
About Mixit
Mixit is a software developer and vendor providing a broker-neutral, multi-asset trading platform offering a market leading Order/Execution Management System (OMS/EMS), an extensive network of connectivity, middle office and compliance solutions to the financial services industry. MIXIT was founded in 2004 and is headquartered in New York, NY.
For additional information please visit www.mixitusa.com
About Marks Baughan & Co.
Marks Baughan & Co. provides investment banking services to growth companies in the Financial Technology and Information Management sectors. Our focus and deep expertise and relationships in these two verticals provide our clients with top-quality results driven by an efficient process. Marks Baughan clients range from public companies with multi-billion dollar market caps to private companies with $10 million in revenues. We deliver results for clients: advising on sales of entire companies and divisions, acquisitions, private placements of equity and debt securities, or strategic advisory services for CEOs and CFOs on public offerings, M&A plans, or investor positioning.