Smallness Hindered Growth
Millenium Information Technologies (M.I.T.) will, by its acquisition by the London Stock Exchange (L.S.E.), be able to canvass for greater business, an official told reporters on Monday.
Xavier Rolet, C.E.O. L.S.E. Group said that though M.I.T. was a good company, the smallness of its balance sheet at times hindered it from getting business. And likewise, it also made it difficult for L.S.E. to do business with M.I.T.
Investors were looking at doing business with companies which had a balance sheet size of U.S.$ 500 million, he said.
M.I.T had a net asset value of U.S.$ 15 million, its C.E.O. Tony Weerasinghe said.
M.I.T., a technological solutions provider to equities trading platforms across the globe, whose shareholders formerly included Sri Lankans, was recently acquired by the L.S.E. for U.S.$ 30 million. It has its main research and development centre at Malabe.
L.S.E. is the world’s third largest stock exchange in terms of market capitalization of listed companies in it.
Weerasinghe prior to this sale had an under 20% equity stake in the company.
“M.I.T. will continue as an autonomous venture,” said Rolet. There is no conflict of interest by this acquisition, as competitor exchanges such as NASDAQ, Deutsche Bourse and the New York Stock Exchange don’t use M.I.T. technology anyway, he said.
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