LONDON — London Stock Exchange will buy Sri Lankan-based technology services company MillenniumIT to obtain a new cutting-edge trading platform, the LSE said on Wednesday.
The acquisition for18 million pounds will lead to cost savings of 10 million pounds per year from 2011, the group said in a statement.
"Improving our technology and increasing our competitive position in the fast-moving trading environment is vital," said LSE Chief Executive Xavier Rolet.
"This transaction enables the group to implement a new, more agile, innovative and efficient IT capability," he added. "It will also offer cost saving opportunities in the future and give the Group a footprint in Asia."
The LSE Group will begin switching over to the MillenniumIT trading system from the end of 2010, replacing TradElect, Infolect, and other platforms, it said.
MillenniumIT chief executive Tony Weeresinghe said the acquisition "is a tribute to the innovative culture of our company, the quality of our technology solutions and our deep pool of talented staff."
"The Group's backing gives us the resources to continue supporting our existing customers, expanding the company into other markets and investing for the future," Weeresinghe added.
Frenchman Rolet took over at the LSE -- Europe's largest stock market -- in February, and said in March that it would benefit from global financial turmoil, despite reporting an annual net loss of 338 million pounds.
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