NeoNet Completes Acquisition of Lexit
11/7/2003 4:23 AM EST
NeoNet, an international agency broker providing efficient electronic
equity execution services for the institutional investor industry, today
announced that it has completed the acquisition of Lexit Financial
Group, Inc. in accordance with the previously announced Merger
Agreement. All shareholders of Lexit have accepted NeoNet's offer.
The final purchase consideration consists of newly issued shares and a
cash portion amounting to approx. USD 1.3 m. The Board of Directors of
NeoNet AB has decided to issue 6 917 343 shares, all of which will be
distributed to Lexit shareholders. The decision is based on the
authorization of the extraordinary general meeting 15 July 2003. The
newly issued shares will correspond to an ownership dilution of approx.
13.7%. With a nominal value per share of SEK 0.05, the newly issued
shares will increase the share capital of the company by SEK 345 867.15.
NeoNet estimates that initially the yearly profit contribution (profit
after goodwill amortization, financial net and including cost synergies)
from the acquisition will amount to SEK 5 - 8 m. The combined operations
will have over 180 institutional clients in 16 countries as well as
considerable growth potential.
"The acquisition of Lexit is now closed and we will focus on creating an
integrated company and on offering clients a very competitive service
for cross-border equity execution," said Hans Karlsson, Chairman of the
Board of Directors of NeoNet.
The acquisition has been approved by the NASD (USA) and FSA (UK)
regarding change of ownership of Lexit Capital, LLC in the USA and Lexit
Capital UK Limited in the UK, respectively.
In connection with the transaction, Hjalmarsson & Gunterberg Corporate
Finance is acting as financial advisor to NeoNet. NeoNet's legal
advisors have been Mannheimer Swartling (Sweden), Nixon Peabody (US) and
Simmons & Simmons (UK).
For further information, please contact:
Company contacts:
Hans Karlsson
Chairman of NeoNet
Tel. +46 8 454 15 00
NeoNet U.S. PR contact: NeoNet's U.K. PR-agency contact:
Gerry Wisz, Spring O'Brien Stefanie Davidson, Cognito
+1 973.267.8800 +44 20 7936 9058
Since inception in 1996 NeoNet has focused on efficient and neutral
agency brokerage. NeoNet provides the institutional investor industry
with execution services offering a single point of access to leading
equity marketplaces worldwide. Clients can execute orders using
electronic direct market access or through NeoNet's international
trading desk. NeoNet has offices in New York, London, Frankfurt and
Stockholm, is listed on the Stockholm Stock Exchange (ticker NEO), and
has clients in 16 countries globally.
www.neonet.biz