Northern Ireland-based banking software developer First Derivatives has acquired US technology marketing company Market Resource Partners in a cash and shares deal that could be worth up to $20 million.
First Derivatives will make an initial cash payment of $4.5 million - financed by existing bank facilities - plus a further $1.5 million through the issue of 436,644 new ordinary shares. The firm could pay up to $14 million more, subject to MRP achieving certain profit goals during the two years ending 31 August 2010.
Founded in 2002, MRP employs 95 people at its office in Philadelphia and posted an Ebitda of $653,000 for the six months to 30 June 2008. The company develops and carries out marketing programmes for technology firms, including Microsoft, Sun Microsystems and Cisco Systems.
Brian Conlon, CEO, First Derivatives, says: "We have invested significant resources in R&D and this accelerates our channel to market particularly in the US and into sectors other than investment banking. The investment will also provide a springboard for establishing a greater presence in the US market and will enable us to replicate our successful nearshore model in North America."
First Derivatives shares were down 9.5 pence, or 4.19%, to 217 pence in morning trading.