Lombard Risk Management plc, a fast growing company providing regulatory, risk management and valuation software for the financial sector, announces the sale of its independent valuation business.
The Group has sold its wholly owned subsidiary Independent Valuation and Risk Services Ltd ("IVRS") to LIFFE (Holdings) plc, a subsidiary of NYSE Euronext, for a consideration of approximately £700,000 plus a deferred consideration element to be calculated based on actual revenues that are achieved from certain named customers over the next year. IVRS reported revenues of £266,270 for the year ending 31 March 2007.
In addition Lombard Risk has signed contracts for the supply of certain software and services, including its Firmament valuation software, to IVRS. These are expected to bring the Group a further £450,000 of revenue over the next 3 years.
Additional information in relation to the transaction is disclosed in the appendix of this announcement.
John Wisbey, chairman and ceo of Lombard Risk commented: "IVRS is a promising business in a promising area, and we will be sorry to see the team leave. That said, we took a strategic decision to sell the business as the investment required to make IVRS a great success would have been large in relation to our size and would have required a considerable change of business direction away from our software roots. We have decided instead to refocus on our software business which continues to show very satisfactory revenue growth particularly in the regulatory and collateral management areas."