According to a company announcement, the founders of foreign Exchange -industry technology provider Leverate have concluded a deal with Saxo Bank to to buy back the company's shares held by Saxo Bank.
The Danish bank purchased 25% of the company back in July 2011 for $12.5 million, making the investment one of the biggest industry news of that year. This concludes the investment partnership between the companies with the size of the deal remaining undisclosed.
Speaking to Forex Magnates, Leverate's VP of Marketing, Nicc Lewis, has elaborated on the timing and meaning of the founders' move. "the trigger was the understanding of Saxo's refocus, as seen in their 2014 Annual Report, which is a move away from their look at entering the lower retail forex market," he said.
According to Lewis, the re-purchase is seen as a transfer or shares between shareholders at opportune timing for both parties. "With Saxo refocussing on the large and semi-professional clients they have less interest to invest and be involved with the management of Leverate, and Leverate's founders have less interest in having institutional investors with a different strategy."
"Focusing on core business"
Leverate's chairman of the Board of Directors, Doron Cohen, said, “Saxo has decided to streamline their portfolio in order to refocus on core business objectives, and the founders of Leverate are interested in having more control over our company’s direction as we cultivate our brand globally.”
“We are grateful to have had Saxo as a partner, and we plan on maintaining our positive relationship going forward,” added CEO Ran Strauss.
“At Saxo Bank, we are delighted to continue working with Leverate in a client capacity,” said the board member of Leverate appointed by Saxo Bank, Bjørn Krog Andersen.
“Today’s announcement is in line with Saxo Bank’s overarching strategy of focusing on the Bank’s core competencies within trading and investment and enhancing shareholder value,” he added.
