UK derivatives trading vendor Ffastfill has bought Exchange Technology, an Australian provider of middle office and trading software, for A$2.5 million.
Ffastfill says it has acquired Exchange Technology for the equivalent of £1 million in cash plus £0.24 million in shares at 7.125 pence per share.
Exchange Technology specialises in providing middle office software in Asia Pacific and has 16 customers, including 12 global banks. The firm is expected to report evenues of £0.5 million in its year to 30 June 2008 and to be "broadly breakeven", says Ffastfill.
The UK vendor says the acquisition will act as the "initial corner stone" of its Asia Pacific strategy and augment its drive to increase penetration in the derivatives middle office marke.
"The Exchange Technology acquisition means that we now have representation on the ground in the third major time zone of the Far East," says Ffastfill chairman and CEO, Keith Todd.
Ffastffill expects deal to be earnings neutral in the first year and enhancing in subsequent years.
News of the acquisition comes as Ffastfill report its first year of profitability. The vendor is reporting profit after tax of £0.92 million for its financial year ending 31 March 2008, compared to a loss after tax of £1.11 million in 2007. Group revenue rose 87% to £11.4million in 2008, compared to £6.1 million in 2007.
Ffastfilll says its order book for the next twelve months stands at £11.5 million, compared to £6.7 million the previous year.
Todd says the firm has demonstrated resilience to general market turmoil, thanks largely to the "recurring nature of our core services revenue".