Canadian exchange operator TMX Group announced that its friendly offer to buy more than 90% of the shares of Sydney-based Razor Risk Technologies Ltd. was accepted.
The roughly AUD$10 million offer, first made in November by wholly-owned subsidiary TMX Australia, will pay 3.49 cents per share. The offer was accepted by owners of 91.2% of the shares, satisfying the bid’s initial 90% condition. Razor shares on the Australian Stock Exchange will be suspended from trading and delisted after the compulsory acquisition process is completed.
“The acquisition of Razor is exciting because it supports several areas of TMX Group's strategy and it provides a point of entry into the attractive risk management sector," Brenda Hoffman, TMX’s senior vice president and group head of information technology, said in a statement announcing the bid in November.
"We are very pleased to be joining forces with the Razor employee team to offer our customers enhanced risk management services and products."
The Toronto-based TMX Group operates a number of financial markets, including the Toronto Stock Exchange, the Canadian Derivatives Clearing Corporation and the Boston Options Exchange. It itself is the subject of a $3.8 billion friendly takeover bid by the Maple Group Acquisition Corporation.
Razor develops enterprise-wide risk management systems for financial firms, including banks, hedge funds, brokers and stock exchanges. Its market clients include the Australian Securities Exchange and the PT Kliring Penjaminan Efek Indonesia. (KPEI) and LCH.Clearnet clearing houses.
Its technology involves a risk measurement and management framework that helps executives view their total exposure to individual entities on a single platform. The system accounts for all events and scenarios between the present and a defined time horizon, allowing for portfolios that change over time and under different scenarios. Since it is a framework, users are not locked into a specific risk formula and can incorporate new sources of risk and best practice.