London Stock Exchange has acquired a majority stake in low-latency trading technology provider, GateLab.
LSE now has a 67 percent share of the Italian trading software company, as the stock exchange group seeks to diversify its business with further expansion into trading and post-trading technology.
The Milan-based company will give LSE access to its ultra-low latency software which supports algorithmic and high frequency trading. LSE already uses one of GateLab's software solutions, with the Traderpath front-office trading software used in Italian and UK derivatives markets.
Gatelab was founded in 1989, specialising in providing real time transaction and information handling, delivering services to electronic exchanges and trading facilities.
Following increased investment, international expansion and the opening of London offices in 2008, the company grew its customer base by 30 percent during 12 months. GateLab generated £3.88 million revenues in 2012.
“This is a great next step in GateLab’s 20 year history and key for the company’s ambitious growth plans,” said Antonio Caroselli, President of GateLab and Head of IT. “Current shareholders will continue to maintain a stake in the business and we will look to combine the successful innovative culture of GateLab with the international expertise, reach and skills of London Stock Exchange Group.”
Antoine Shagoury, LSE group chief operating officer and CIO added: “Innovation is a key driver of business success and we are confident that GATElab’s technology and innovative approach will be of great benefit to the Group.”
LSE currently provides trading software to financial organisations around the world, using its Linux-based Millennium Exchange software.
In its most recent financial results LSE reported growth in sales of the software it acquired through its 2009 acquisition of trading software company MilleniumIT. Increased sales of its software services enabled the stock exchange group to grow its revenues during the third quarter, despite difficulty in capital markets.
Commenting on the financial results at the time, LSE chief exec Xavier Rolet said: “The Group has continued to benefit from a more diversified range of businesses with particularly strong performances from our information services and our technology operations.”