Derivatives trading ASP Ffastfill is acquiring privately-held back office specialist Future Dynamics in an all-share deal.
Future Dynamics has been loss making over recent years and undertook significant re-structuring earlier in the year. Annual turnover on a pro-forma basis is just over £2 million. Net assets on completion, while positive, are expected to be of a nominal value.
Ffastfill is acquiring the entire issued share capital of Future Dynamics in exchange for 33,333,333 new ordinary shares. Ffastfill shares are currently trading at 8.38 pence.
FFastFill says the acqusition will enable it to expand its market penetration both in the UK and the USA by combining its managed service offerings with the middle and back office functionality provided by Future Dynamics.
Keith Todd, FfastFill's executive chairman, says: "Future Dynamics provides us with both the complementary capabilities in the middle office, and a presence both in London and Chicago with an additional twenty-eight customers. Together we will now be able to offer a unique managed order flow service to firms trading the derivatives markets across the world.'
The two firms are already collaborating on a contract to provide order routing and risk control services for a new futures trading product from Reuters and the Chicago Mercantile Exchange.
Todd says the firm will be integrating the two companies and their product and service lines during the current financial year to March 2005. It is expected that the acquisition will be earnings enhancing in the year to March 2006.