Guido Hagemann, founder of ORIMOS S.A., realized early that high-performance, computer-based, fixed-income analytical applications would become an important component of global fixed income trading. As a former consultant who developed derivative pricing models for large, global financial institutions, he believed that he knew exactly want the market needed. To capitalize on this market knowledge, Hagemann organized a core development team in Berlin, Germany, and acquired a base technology platform. 12 years later, with administrative offices now relocated to Switzerland and sales and support operations in London, the company had amassed a blue-chip list of multinational client organizations that were active in the global fixed-income trading market. The firm was recognized as one of Europe's leading providers of automated fixed-income pricing engines.
When Hagemann approached Marlin & Associates (M&A), he had already concluded that it was time to sell the company. He knew that ORIMOS had the products and the technology required for success. But, he also knew that his firm did not have the sales, marketing, and distribution infrastructure required to take advantage of the market opportunity. He retained M&A to advise the Company as it explored a wide range of strategic alternatives.
M&A began the process with a detailed review of the ORIMOS’ strengths and weaknesses. M&A staff interviewed senior management to understand their short and long-term goals, reviewed the company’s commercial and financial results, and examined the firm’s strategic plans, marketing plans, and budgets. Then, with the material thoroughly digested, and after defining an overall strategy with ORIMOS, M&A approached a limited number of strategic parties in eight countries, spread over three continents. Management presentations were held in New York, London, and the Nordic region. Several of these parties responded enthusiastically.
The group of potential buyers was quickly narrowed to two – both of which had a compelling strategic need for the capabilities that ORIMOS had developed as well as the financial wherewithal to affect a transaction. Both were deemed by Hagemann to be acceptable potential partners. M&A then helped ORIMOS conduct a limited auction. Throughout the process, M&A assisted Hagemann and his management team in evaluating both the economics of the offers, as well as the various buyers.
Less than nine months after beginning the process, Hagemann sold the company to ION Trading, of Dublin, Ireland. ION was pleased because the acquisition reinforced their position as is a global market leader in providing innovative, high performance, real-time solutions across multiple asset classes for electronic trading, position management, pricing, risk management and downstream processing. Hagemann and his employees were pleased because the transaction allowed them to join with a larger firm with significantly more resources.
Marlin & Associates New York LLC initiated the transaction, helped manage the process, assisted in the negotiations and acted as exclusive strategic and financial advisor to ORIMOS S.A.