Iress has entered into a binding share sale and purchase agreement to sell its European headquartered low-latency market data business, QuantHouse, to BAHA Tech Holding AG (BAHA), a privately-owned, Vienna-based market data provider founded in 1995, for €17.5m.
It provides real-time market data, financial news, technology and solutions for the financial services industry covering over 12 million financial instruments on more than 150 exchanges.
For BAHA, this will significantly boost the exchange coverage and the customer base, as well as they have the opportunity to leverage data solutions with the terminal business.
The rational to divest the QuantHouse business follows a strategic review Iress conducted as part of its transformation program, which determined that Iress was not the natural owner of QuantHouse, and it would perform better under renewed ownership with the capacity and intent to invest in delivering specialist market data offerings at scale to global clients. Iress will retain its traditional market data offering as part of its Trading & Market Data business.
As part of the transaction, Iress has also agreed to a five-year supply agreement with BAHA to provide existing QuantHouse market data feeds into Iress’ software.
Completion of the sale is subject to BAHA ensuring it has the necessary market data agreements in place to ensure seamless continuity of service to QuantHouse clients. It is anticipated that the transaction will be completed by the end of the year. Following completion, Iress will continue to provide certain services for a period of up to 12 months to assist in the transition to BAHA’s ownership.
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