A Delaware state judge has ruled that investment banking-focused technology company Ipreo must pay at least $142 million in damages after finding that its merger with a competitor violated a non-compete agreement.
Vice Chancellor J. Travis Laster in Wilmington said in a ruling on Friday that Ipreo’s $1.86 billion sale to IHS Markit Ltd breached a prior non-compete Ipreo had with financial services technology business Symbiont.io Inc.
Ipreo and Symbiont entered into the non-compete when they formed a joint venture in 2016.
Laster’s called for the dissolution of the joint venture, which he suggested should receive the damage award to pay off its creditors.
Symbiont is expected to receive around $70 million after the joint venture is dissolved.
Symbiont CEO Mark Smith said in a statement that the company was “delighted” with the ruling.
A representative for IHS Markit, which now owns Ipreo, said in a statement that the company is “reviewing the decision and considering all options, including an appeal to the Delaware Supreme Court.”
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