First Derivatives, the Newry headquartered AIM-listed company, has acquired big data consultancy QuantumKDB for £2.2 million (€2.9m).
The group said the deal would support the growth of its Kx database business and will likely be earnings enhancing in the first full year following acquisition.
Kx is a Californian database technology business. First Derivatives works with Kx and is a consulting partner for the business.
The initial consideration for the acquisition is £1.7 million of which £600,000 is payable in cash and £1.1 million through the issue of 72,940 new ordinary shares in FD. Deferred consideration of up to £500,000 is payable on the achievement of certain targets on the 12-month anniversary of the acquisition.
Application has been made for the shares to be admitted to trading on AIM and ESM and it is expected that admission will take place this coming Friday.
Quantum was founded in 2011 by Kieran Lucid and provides Kx consulting in the UK, US and Hong Kong. The majority of its clients operate in capital markets and First Derivatives said the acquisition would strengthen its relationship with certain key clients as well as adding to the existing customer base.
Quantum has a total of 15 consultants with strong experience in Kx technology. In its latest financial year to September 13th, Quantum reported profit before tax of £300,000 and had net assets of £250,000 at acquisition.
"We are experiencing increasing demand for Kx skills from existing and potential customers and the acquisition of Quantum will add to our existing capabilities and support our growth plans. We welcome its staff to the group," said First Derivatives chief executive Brian Conlon.
First Derivatives employs over 1,000 people worldwide and counts many of the world’s top investment banks, brokers and hedge funds as its customers. The group, which provides trading and risk management software systems and consulting services to the capital markets industry, has operations in London, New York, Stockholm, Singapore, Hong Kong, Sydney, Toronto, Philadelphia, Dublin and its headquarters in Newry.