XigniteSplitOff Accurately Prices Multi-Billion Dollar Split-Off Transactions Via Custom Investor Websites
SAN MATEO, Calif. April 17, 2007--Xignite, the leading pure-play provider of financial web services for mission-critical corporate applications, today announced the availability of XigniteSplitOff, a complete solution that delivers live stock market data to web applications to power corporate split-off transactions and investor communication.The successful completion of a split-off transaction requires accurate and timely calculations of daily "volume-weighted average prices" (VWAP) during the offer period based on the parent’s and the subsidiary’s traded shares. Precise daily VWAP data is critical in determining the exchange ratio used to finalize the terms of the exchange offer.
Companies such as McDonald's and Halliburton have recently used XigniteSplitOff to accurately price and execute complex, multi-billion dollar split-off transactions, and then to seamlessly update the posting of transaction terms on web sites that are launched specifically to support investor communication.
"A corporate split-off is a complex event where much occurs within a short period of time," said Stephane Dubois, CEO of Xignite. "Corporate IR teams just don't have the time to build an effective web site and worry about the accuracy of the data they will provide investors. XigniteSplitOff takes this whole burden off their shoulders. XigniteSplitoff is designed for use in any financial transaction to ensure flawless compliance at an affordable rate and with little development effort. Our work with recent customers on strategic, high profile transactions demonstrates our ability to get this solution up and running in a matter of days. These high value web services can make an entire organization more nimble in the face of tight schedules and technical mandates."
XigniteSplitOff provides a SEC regulatory-compliant method to disclose the final split-off transaction terms in a timely and cost effective manner, providing both individual and institutional investors equal access to that information from a custom investor web site. The solution dramatically reduces the burden on corporate finance and investor relations teams to master complex VWAP calculations and then to explain transaction mechanics to investors.
XigniteSplitOff provides substantial benefits for corporations undertaking split-off transactions. Among the major benefits of this solution:
- A customized and hosted web site providing complete information on the terms of the split-off;
- Flexible exchange offer and valuation periods for the purpose of calculating the exchange ratio;
- Customized calculation of the indicative exchange ratios using Xignite’s accurate daily VWAP data;
- Automated calculation of the final exchange ratio and display of the final offer terms instantaneously upon the offer's expiration;
- Archiving of the web site information for easy compliance with SEC regulations;
- Comprehensive monitoring, tracking, and reporting of site activity.
Regulatory compliance mandates -- such as SEC requirements for information transparency and equal information access for different investor classes -- add layers of complexity to these mission-critical transactions. By choosing an on-demand web service from pure-play provider Xignite, public companies and their investment bankers are able to provide full, public disclosure of price and exchange ratio calculations to reduce the risk of SEC scrutiny of possible price manipulation.A corporate split-off is a type of corporate reorganization whereby a parent will split-off its interest in a subsidiary by offering existing shareholders stock in the subsidiary in exchange for the parent's stock. Corporate split-offs are becoming increasingly popular for publicly traded companies today due to the tax advantages they provide over straight sales. The most effective way to communicate transaction information in the Internet Age is by posting the final offer terms on a widely publicized web site.
Xignite has a completely open, self-service distribution model, offering online registration and subscription with transparent pricing. Everything a developer needs is available directly from the web site – including an integrated data model, sample code, extensive documentation, free downloads, demonstrations, online support, and more. All Xignite web services are available by flexible monthly or annual subscription, packaged with online support.
Xignite (pronounced "x-ignite") is the leading pure-play provider of financial web services for mission-critical corporate applications. As a pioneer in the field, Xignite offers the broadest integrated suite of financial web services available today on an on-demand platform, with more than 35 solutions covering market quotes, news, corporate data, industry information, analytics, tools and more. Xignite powers mission-critical applications for portfolio management, sales management, trading, investor relations, corporate portals, executive dashboards, analytical engines and more. Xignite serves more than 220 clients, including Ameriquest, GE Commercial Finance, Goodyear, ING, McDonald's, Marsh & McLennan, Starbucks, and Wendy's. For more information, please visit www.Xignite.com.