Friday 23 February 2018

Northern software firm agrees final payment for $19.3m takeover

Donal O'Donovan

NEWRY-BASED software company First Derivatives has agreed a final $3.3m (€2.35m) payment to complete its $19.3m takeover of US-based Market Resource Partners (MRP). The deal was first announced back in 2008 but the final price was conditional on performance.

First Derivatives is a supplier of software and consulting services to global investment banks and hedge funds. It operates worldwide from a base in Northern Ireland.

The final payment is being made with an issue of 450,914 new First Derivatives shares, valued at £4.619 (€5.26) each.

Under the original deal First Derivatives paid just $6m for the company upfront, with a maximum of $14m more payable if the takeover target achieved agreed profit targets.

The structure of the deal allowed First Derivatives to pay the bulk of the takeover price through phased payments as agreed targets were met.

Last night's payment brings the total price of the acquisition to $19.3m, of a possible $20m. First Derivatives said MRP substantially achieved the profit goals set when the acquisition was agreed.

Shares in London were unchanged yesterday. The AIM-listed company has a market capitalisation of £77.96m.

Earlier this month the company announced plans to create 359 new jobs over the next three years. It came after securing funding from the North's development agency Invest Northern Ireland.

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