French fintech vendor Linedata Services has signed an agreement to acquire Beauchamp Financial Technology (BFT), a UK-based provider of trading and portfolio management software to the hedge fund industry, for an initial £11m in cash plus a two year earn out of up to £14m.
Founded in 1997, BFT employs 110 sales, development and support staff at offices in London, New York and Hong Kong and at a technical support facility in Riga, Latvia. The vendor's products are used by over 170 client firms in Europe, North America and Asia. Linedata says BFT is expected to realise sales of over £11m (an organic growth rate of 25%) and Ebitda of 10% in the financial year ending 31st March 2006.
The Paris-based vendor says the acquisition will be financed entirely in cash, with an initial payment of £11m and an earn out clause for a maximum of an additional £14m, based on the economic performance of BFT over financial years 2005-2006 and 2006-2007.
Anvaraly Jiva, chairman and CEO, Linedata Services, comments: "This new acquisition in the field of asset management is perfectly in line with our objectives to increase our share of the world's English-speaking markets, strengthen our position in the most buoyant segments, and to build a group of high-performing companies that can actively contribute to our future growth."
Linedata says the acquisition adds middle and back office systems to its product portfolio, which will complement its front office system, LongView Trading.
The French firm acquired US-based Global Investment Systems in September but missed out on buying Toronto-based Financial Models Company earlier this year after it was out-bid by US-based SS&C Technologies.