[London, ENGLAND] Online share distribution company EO plc
announced Wednesday an agreement to acquire EPO.com, a similar
European operation that enables individual investors to enter
the market for primary equity capital.
Exact terms of the deal were not disclosed, although EO says
it was an all-share transaction that valued its own shares
at £1.50 (US $2.18) each.
As a result of the takeover, the combined business will
have a substantially enlarged user base, with 175,000
members — of whom 85,000 come from EPO.com.
Founded in Sweden in 1998 but headquartered in London,
EPO.com has begun to open up the previously restricted
market for primary equity capital, participating in over
40 transactions that include stock market listings in both
Sweden and the U.K.
John St.John, EO’s chief executive, called the deal “a
milestone in EO’s development” and said it would benefit
customers and partners alike.
“The synergies between the two businesses will both increase
revenue and minimize costs, allowing us to consolidate our
position as Europe’s number one player in this rapidly
evolving market,” said St.John.
Ola Lauritzon, chief executive of EPO.com, added the time
was right for the emergence of one clear leader in the
market.
The enlarged company will have distribution in the U.K.,
Sweden, Germany, France, Italy and Finland. In addition,
EO’s partnership with financial information portal
GlobalNetFinancial.com extends its reach potentially
into other markets, including the United States, The
Netherlands, Spain, and Denmark.
EO has put substantial efforts into building partnerships
with portals, online brokers, and banks in order to gain
a larger user base. Among its partnerships are those with
retail investment sites ADVFN, hemscott.NET and
moneyextra.com; online brokers Charles Schwab Europe,
Sharepeople, Stockacademy and Stocktrade; and
investment banks UBS Warburg and Nobles.
EPO.com’s Lauritzson will join the EO board as marketing
director.
The deal leaves EO in what it says is a strong financial
position, with nearly US $10 million having been raised in July
in a “Friends and Family” round of fundraising. A further
US $15 million has come from the acquisition of Internet
Indirect by EO’s founding shareholder NewMedia SPARK.
EO’s acquisition of EPO.com is subject to regulatory approval
in both Sweden and the U.K.
EO can be found on the Web at www.eo.net.
