Broker solutions co Leverate raises $12.5m from Denmark's Saxo Bank

Leverate has 50 employees and wants to hire 20 more, mostly software engineers.

Denmark's Saxo Bank has acquired 25% of broker solutions company Leverate Ltd. The parties did not disclose the size of the deal, but blog Forexmagnates says that the investment totaled $12.5 million at a company value of $50 million for Leverate, which currently has a few million dollars in sales.

Saxo Bank, an online trading and investment specialist, bought shares in Leverate from its five founders, including co-CEOs Ran Strauss and Doron Cohen. Part of the investment will go directly to Leverate to finance rapid growth. One name stands out among Leverate's outside investors: Tempo Beer Industries (TASE: TMPO) controlling shareholder Jack Beer.

According to IVC, Leverate raised $100,000 when it was founded in 2008. Since it was profitable from the outsiet, and never received substantial outside investment, Jack Beer can presumably sell his stake at a handsome profit of several million dollars.

Leverate has 50 employees and wants to hire 20 more, mostly software engineers. Leverate provides software as a service (SaaS) solutions for online trading.

In a joint statement, Strauss and Cohen said, "Leverate will continue to provide innovative and comprehensive proprietary solutions for the FX market, and we are proud to be working together with Saxo Bank. Time and time again, Saxo Bank has been recognized as a leading force in the forex industry, and together we plan to continue Leverate's R&D efforts in the area of technology solutions and related services for brokers and financial institutions."

Published by Globes [online], Israel business news - - on July 28, 2011

© Copyright of Globes Publisher Itonut (1983) Ltd. 2011

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