BAE Systems to acquire financial crime buster Norkom for £187 million
15 Jan 2011
BAE Systems Plc (BAE), the world's second-largest defence company today said that it proposes to buy Norkom Group, the Irish software specialist firm that provides financial crime and compliance solutions to the financial services industry, for £187 million ($290 million).
Dublin-based Norkom helps financial organisations to detect and combat financial crime, control defenses and evolve strategies against fraud, money laundering and other types of financial crime.
Deployed in more than 100 countries across four continents, AIM-listed Norkom's financial crime and compliance solutions monitor millions of transactions a day for global financial services clients, which include six of the top ten financial services organisations in the world.
Its clients include Spain's Banco Santander, HSBC, Credit Agricole, Standard Chartered Bank, Italy's Generali Group, New York Clearing House and many others.
Under the deal that has been recommended by the board of Norkom, Farnborough, UK-based BAE is offering €2.10 per share, a 35-per cent premium to 13 January closing price.
BAE said the acquisition of Norkom would be compliment to its own Detica Information Intelligence unit, which BAE had acquired in September 2008 and has clients such as the UK Metropolitan Police that uses its software for counter-terrorism operations and the US government and HMRC to detect tax frauds.