PE-Backed Netik Buys CorrectNet

Netik, a company backed by private equity investor Symphony Technology Group, has acquired CorrectNet, a provider of managed client communications and delivery services and technology. Symphony Technology Group provided an undisclosed amount of capital to support this transaction. The companies did not reveal any financial terms of the deal.

PRESS RELEASE
NEW YORK – May 18, 2011 – Netik LLC, a Symphony Technology Group (STG)
portfolio company and leading global financial information management
provider, announced today the acquisition of CorrectNet, the market
leader in managed client communications and delivery. The union of
CorrectNet with Netik’s information management products and services
is highly complementary and unique to the market place. STG provided
the capital to support this transaction. Financial terms of the deal
were not disclosed.

CorrectNet is the global market leader in scalable information
distribution, proven in over 250 implementations and CorrectNet’s
infiPOINT data platform and service provides the technology,
infrastructure, operations and people to manage the aggregation,
presentation, and delivery of complex information to business users.

Netik is focused on information creation and management and CorrectNet
is focused on information delivery and distribution. The resulting
end-to-end proposition addresses the complete information creation,
management and delivery chain and promises powerful market impact and
tremendous synergy. Rob Flatley, CEO of Netik, comments “In a market
where IT investment across the buy side and sell side is focused on
client service and quality, we are bringing scale into that market
equation, first from an information management perspective and
secondly from an information delivery perspective.”

Flatley continues “Both organizations are highly focused on delivering
scalable fully managed services, with Netik focused on delivering
information management in a SaaS model and CorrectNet already
delivering this in a hosted environment for reporting, RaaS. The core
values in information management and distribution of both
organizations means we are already highly compatible and perfectly
incremental as a solution set. Both companies are on a growth
trajectory and we will be making significant investment into the
combined business with immediate integration of the two companies to
achieve speed to market. Our customers will benefit from a broader
spectrum of solutions from us, as a single vendor, leveraging
significant R&D focus back into our core competencies.”

“We are pleased to be supporting this important business combination,”
commented Marc Bala, Principal with Symphony Technology Group. “This
transaction represents an extremely important step in continuing to
reposition Netik as a leading global provider of SaaS and KPO
solutions for the buy side and sell side.”

There are also considerable regional synergies to be gained from Netik
and CorrectNet joining forces and CorrectNet will see the immediate
benefit from Netik’s regional presence. Netik has invested heavily in
expansion in the Asia Pacific region and offshore capability with
operations in North America, Asia, Europe, Middle East and South
Africa in addition to the eight global data centers that CorrectNet
brings to the table. Netik will continue to operate as a New York
headquartered company with the addition of CorrectNet’s Long Island
office. Robert Miller, CorrectNet’s Founder and CEO, will continue to
lead the CorrectNet business in the role of President of CorrectNet.

Netik’s established Delta One Data business, as market leading
provider of index and ETF data, also stands to benefit from the
acquisition. The acquisition of CorrrectNet, as the captive market
leader in data distribution, adds a powerful and scalable platform for
the delivery of Netik’s Delta One Data to the client base over
the Internet.

Since the appointment of Rob Flatley, just over a year ago, Netik has
added significantly to its management team and invested heavily into
both product strategy and its expansion in the Asia Pacific region and
offshoring capability and this acquisition marks the first in the
company’s growth plans.

About Netik
Netik is a global provider to the securities industry of financial
data management and reporting services and products with operations in
North America, Europe, Middle East, South Africa and Asia. As a
growing and expanding company, Netik seeks to increase the
sophistication and calibre of what it produces, as well as provide
limitless services that bring together people, product, well-honed
process and proven technology in the delivery of leading financial
data management.

Netik’s data management products include Netik Global Securities
Master, Netik GSMSM, a reference data managed service, Delta One Data,
a comprehensive source of index and ETF data, Netik InterView™, a data
warehouse for the storage of holistic financial data and Netik
Information PortalSM to visualize and report on data.

These Netik solutions sit at the heart of investment and securities
operations at many of the world’s leading Asset Managers, Hedge Funds,
Wealth Managers, Private Banks, Prime Brokers, Fund Administrators,
Custodians, Investment Operations Outsourcing providers and Investment
Banks.

For more information please visit www.netik.com.

About Symphony Technology Group
Symphony Technology Group (STG) is a strategic private equity firm
with the mission of investing in and building great software and
services companies. In addition to capital, STG provides
transformation expertise to enable its companies to deliver maximum
value to their clients, to drive growth through innovation, to retain
and attract the best talent and to achieve best in class business
performance. STG’s current portfolio consists of twelve global
companies.