First Derivatives to buy Cognotec
NEWRY-based financial software firm First Derivatives confirmed yesterday that it is in talks with the receiver of Dublin-based Cognotec to acquire part of the business and assets of the collapsed company.
In a statement to the stock exchange, First Derivatives said that, subject to successful due diligence, it expects to complete a purchase within the next few days.
Cognotec, which was founded by entrepreneur Brian Maccaba 20 years ago, collapsed last month as its fortunes waned in tandem with the turmoil amongst the financial services industry.
Cognotec's foreign exchange trading products are used by a number of clients, but one of its biggest customers cancelled a major project in 2008. The firm generated turnover of $18.5m (€13.3m) in 2008 and a loss of $1.76m (€1.2m). That compared with a loss of $9.9m the previous year.
Cognotec, which employed 65 staff, had been trying to restructure its business but a receiver from KPMG was appointed last month following an application from Barclays Bank (Ireland), which is owed $9m (€6.5m).
Some Cognotec competitors have already been offering customers of the Irish firm discounted upgrades to their systems in an effort to take advantage of the collapse.
AIM-listed First Derivatives reported a 66pc rise in turnover to £11.4m in the six months to the end of last August, while operating profit for the period rose nearly 22pc to £3m.
This week, the company announced a strategic alliance with BrokerEdge in an effort to boost its presence in Asia.