First Derivatives in another major acquisition

First Derivatives chief executive Brian Conlon pictured with Arlene Foster when she visited its Newry base in her role as Enterprise Minister
Gary McDonald Business Editor

NEWRY-headquartered financial software firm First Derivatives is paying £2.2m to acquire big data consultancy QuantumKDB.

The AIM-listed group, which employs more than 1,000 people globally and counts many of the world’s top investment banks, brokers and hedge funds among its clients, said the deal would support the growth of its Kx business and should be earnings-enhancing in the first full year following acquisition.

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 (application has been made for the shares to be admitted to trading, and it is expected that will be confirmed by this Friday).

It will increase the total share capital of the company to 23,921,972 ordinary shares.

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, Quantum reported profit before tax of £300,000 and had net assets of £250,000 at acquisition.

First Derivatives chief executive Brian Conlon said: “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.”


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