First Derivatives acquires Spanish software company to drive telco growth
Newry company to pay up to €2.5m for Telconomics, a privately-held provider of telco analytics software
Financal software and consultancy group First Derivatives has acquired Telconomics, a privately-held provider of telco analytics software, for up to €2.5 million. Photograph: Newraypics.com
Madrid based Telconomics was formed in 2009 to provide analytics consulting for telco network operators, and its INTEF software product, a platform to perform critical activities such as network development strategy, will be subsumed into First Derivatives’ Kx Telco Solutions suite. This means that the deal is expected to be earnings enhancing in its first full year and forms part of the group’s continuing strategy to target the telco market with its Kx technology, where it sees significant opportunities. In the year to December 31st 2016, Telconomics generated revenue of € 0.8m and earnings of € 0.3m.
Brian Conlon, chief executive officer of Kx, said: “Telco is one of our key target verticals and we believe that this acquisition will help turbo charge our growth in this area. The products, domain expertise and customer contacts provided by Telconomics, supplemented by our data science, machine learning and engineering resources, provide the opportunity for significant returns.”
The Newry headquartered company will pay €0.9 million initially for the transaction, of which €0.4 million is in cash, and €0.5 million in shares, with deferred consideration of up to €1.6 million.
The founders of Telconomics - Alfonso Campo, Javier Lazaro and Juan Blazquez - will remain in their current roles.