Kanbay acquires capital markets technology firm Accurum

Kanbay acquires capital markets technology firm Accurum

Kanbay, a Chicago-based provider of IT service to financial institutions, has acquired Accurum, a provider of front and middle office technology services to capital markets firms, for a maximum consideration of $7 million.

Under the deal, Kanbay will pay a $5 million closing payment, subject to certain adjustments, plus contingent payments of up to $7 million, payable upon the achievement of certain performance targets.

Accurum employs 180 people at offices in the US and UK and at its offshore centre in Chennai, India. The firm provides front and middle office services, including sales, trading, risk management and research. The company's 2004 revenues were approximately $12 million.

Commenting on the acquisition, Raymond Spencer, chairman and CEO, Kanbay, says the Accurum business "adds to our breadth and depth of service for our current clients".

Following the acquisition, Accurum will be operated as a wholly-owned subsidiary of Kanbay. Accurum's Venkat Vallabhaneni will continue as its CEO.

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