Reuters Holdings Plc said on Friday that it had agreement to acquire fellow digital trading systems supplier Teknekron Software Systems Inc, Palo Alto, California for $125.1m. Most of the price is represented by goodwill and intangible assets that will attract tax benefits in the US over 15 years, making the net cost to Reuters significantly less than the headline figure.Teknekron’s management will retain operational control and will receive stock appreciation rights. It has branches in the UK, Japan, Switzerland, Canada and Australia, was founded in 1987 and employs about 200 people. Its did $8.2m pre-tax on sales of $38.7m in 1992 specialising in financial services and manufacturing automation, helping companies to formulate, plan and execute strategic plans for information technology evolution. Assets, primarily cash, total $3.6m. Teknekron’s software enables finnacial services users to display data feeds from various vendors, such as Reuters, in their own preferred way on their in-house computer systems. Under Reuters’ wing, it will work to develop interfaces for client and third party applications.
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