STOCKHOLM, Sweden, Sept. 09, 2003 (PRIMEZONE) -- NeoNet, an international agency brokerage providing efficient electronic equity execution services for the institutional investor industry, today announced that NeoNet, Lexit Financial Group, Inc. and shareholders representing 68% of votes and capital in Lexit have signed the final agreement for NeoNet's acquisition of Lexit Financial Group, Inc.'s in accordance with the previously announced Letter of Intent.
The purchase consideration will consist of cash and newly issued shares in NeoNet AB (publ). The cash portion of the purchase consideration amounts to approximately USD 1.6 m. and the share part will consist of approximately 8.2 million newly issued shares. Adjustment to the purchase consideration regarding Lexit's earnings during the period April 1 2003 to August 31 2003 will be made.
The acquisition is conditioned upon acceptance from 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. This is expected during September. Further, the acquisition is inter alia conditioned upon shareholder approval from Lexit's shareholders. The acquisition is expected to be completed in the latter part of September.
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 7 - 10 m. Goodwill arising from the transaction is estimated to about SEK 60 m and is amortized over ten years. The combined operations will have over 180 institutional clients in 16 countries as well as considerable growth potential. For more information see press release dated 19th June 2003.
"The acquisition of Lexit provides NeoNet with an excellent solution and expertise for US trading, a larger client base for continued international expansion and a very strong offering giving clients the possibility to trade shares directly in approximately 80 percent of the world's stock market capitalization," said Torvald Bohlin, CEO of NeoNet.
"I am looking forward to joining NeoNet. The combined company benefits our joint client base and positions NeoNet to compete more effectively on a global scale," said Peter Kearns CEO of Lexit.
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 14 countries globally.
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