Tuesday 15 October 2019

Fintech First Derivatives completes Kx acquisition with €48m cash deal

Brian Conlon, CEO of First Derivatives
Brian Conlon, CEO of First Derivatives
Ellie Donnelly

Ellie Donnelly

Global analytics software business First Derivatives has completed the acquisition of a minority shareholdings in Kx Systems.

The move means First Derivatives now own 100pc of the group, which it paid cash of $53.8m (€48m) for.

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Kx Systems provides companies with the high-speed processing of real-time, streaming, and historical data.

Among the businesses that use its products are Airbus, and Commerzbank.

The decision to fully acquire the group was made in July last year.

First Derivatives CEO Brian Conlon said: "Since we acquired a controlling stake in Kx Systems in October 2014 we have invested heavily to deliver the performance advantages of our combined solutions, branded as Kx technology, to a range of end-markets.

"We are making exciting progress as we demonstrate our ability to transform our customers' operational performance by unlocking the value in their data. Full ownership of Kx Systems is an important milestone as we continue to commercialise our technology."

Headquartered in Newry, First Derivatives provides software, consulting and data analytics products and services, initially to the investment banking sector but increasingly to non-financial sectors.

Goodbody analyst Gerry Hennigan described the completion of the deal as "a clear positive milestone" for the group.

"Closure of the transaction, and full ownership of Kx Systems, is a clear positive milestone for First Derivatives, given that the Kx technology underpins the value proposition of First Derivatives, the commercialisation of which management at First Derivatives has extended into new verticals," Mr Hennigan said.

Revenue at First Derivatives jumped 17pc to £217.4m (€248m) in the 12 months to February 28 this year.

The group's adjusted profit after tax also increased by 17pc to £22.9m (€26m).

Yesterday shares in the company were trading down less than 1pc in London.

Irish Independent

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