The Hindu : SSI buys out Nasdaq Global Holdings' stake in JV

Online edition of India's National Newspaper
Saturday, Oct 04, 2003

Business

Business

SSI buys out Nasdaq Global Holdings' stake in JV

By Our Special Correspondent

CHENNAI OCT. 3. SSI has bought out Nasdaq Global Holdings in the Bermuda-based joint venture IndigoMarkets Ltd.

IndigoMarkets was founded in January 2000 as a joint venture between Nasdaq Global Holdings and SSI. While SSI held 45 per cent stake in the venture, Nasdaq had 55 per cent.

SSI is reported to have paid a total consideration of $1.78 million to Nasdaq.

Following the completion of the deal, IndigoMarkets has become a fully owned subsidiary of SSI from September 2003.

The $1.78 million consideration paid has two parts. The first part involves payment to acquire the 55 per cent stake of Nasdaq.

The second pertains to payment made as compensation for the cost involved in enhancing the product of IndigoMarkets while doing work of Nasdaq Japan.

Sources said IndigoMarkets had independent relationship with all customers, though SSI did the marketing and sales while Nasdaq took care of accounting and legal aspects. As such, SSI mandarins felt that it would serve the company's interest best if Nasdaq was bought out in the joint venture. IndigoMarkets, it was pointed out, had revenue of $9-10 million last year.

"IndigoMarkets will now provide SSI opportunities to work on securities solutions for global clientele," a release from the company quoted Suresh Kalpathi, Chairman, as saying.

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