Lombard Risk Management Regulatory News (LRM)

1 Sep 2005 07:01

Lombard Risk Management PLC01 September 2005 1 September 2005 Lombard Risk Management plc ("Lombard Risk" or "The Company") Acquisition of STB Systems Ltd Lombard Risk Management plc, the provider of risk systems and independentvaluation services, has agreed to acquire STB Systems Ltd, a leader incompliance automation solutions, with world class central bank regulatoryreporting, anti money laundering and other compliance software systems. Lombard Risk will pay an initial consideration of £2m, of which £1.27m ispayable in cash and £0.73m will be satisfied through the issue of 7,326,779 newordinary Lombard Risk shares at 10p per share plus an additional earn-out of upto a maximum of £1.0m payable in shares depending on the performance of STBSystems over the period from 1st June 2005 to 31st March 2006. Application willbe made for the new ordinary shares being issued as part consideration for theacquisition of STB Systems to be admitted to AIM. It is expected that dealingsin the new ordinary shares will commence on 6 September 2005. The Company willacquire the entire issued share capital of STB Systems on completion, which isexpected within 7 days. STB Systems' sales for the year ending 30 November 2004 were £2.78m. During thisperiod losses of STB Systems before taxation were £ 0.29m. In the UK approximately one third of all banks, along with building societiesand investment and other firms, use STB products to report to the Bank ofEngland and to the Financial Services Authority. STB Systems has developedcomprehensive compliance systems, supplying industry-leading products STB-Reporter (regulatory reporting including Basel II), STB-Detector (financialcrime detection) and STB-GlobalView (management systems and controls). STB Systems, led by Michael Thomas, CEO, will provide Lombard Risk withsignificant market share in the compliance automation market and considerableexpertise in the areas of regulation, anti money laundering and compliance. Lombard Risk will fully exploit STB Systems' capabilities, adding significantcompetitive advantage in terms of their existing business relationships andspecialist expertise. Commenting on the acquisition, John Wisbey, Chairman and Chief Executive ofLombard Risk said: "We are delighted to welcome STB Systems into the LombardRisk Group. They have an excellent client base, and this acquisitionsignificantly expands our activities in the area of regulation and compliance,allowing us to offer an even more comprehensive offering to our clients andfurther expand our marketplace opportunities".Enquiries: Lombard Risk Management plcJohn Wisbey, Chairman & CEOTel: +44 20 7384 5000 STB Systems LtdMichael Thomas, CEOTel: +44 20 7403 2188 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. STB Systems STB Systems has built its reputation as a world leader in central bank reportingsolutions, with world class regulatory, anti money laundering and compliancesoftware systems, delivering automation solutions for hundreds of leadinginternational institutions. From offices in London, New York, Hong Kong and Singapore, STB resolves criticalissues simply, securely and reliably thanks to the functionality and userfriendliness of its products. STB's leading regulatory, anti money laundering and compliance systemsSTB-Reporter, STB-Detector and STB-GlobalView are perfectly placed to satisfyfinance industry requirements arising from challenging regulatory demand inareas such as strengthening capital reporting and increased financial crimelegislation. Websiteswww.lombardrisk.comwww.stbsystems.com This information is provided by RNS The company news service from the London Stock Exchange