22 July 2018
Visit www.avoka.com

First Derivatives to buy cash-strapped Cognotec

03 February 2010  |  6802 views  |  0 Buy Road sign

Capital markets tech house First Derivatives has struck a deal to buy Cognotec, the Irish FX dealing systems provider that went into receivership last week. Financial terms have not been revealed.

Cognotec has been operating for nearly 20 years, employing some 65 people with offices in Dublin, London, New York and Tokyo.

However, its business stuttered during the economic downturn and last week Barclays Bank, which is owed some $9 million from a $12.5 million loan advanced in 2006, appointed Kieran Wallace of KPMG in Dublin as receiver.

In pushing through the sale, Wallace had first to seek a court order overturning a prior agreement relating to the transfer of intellectual property rights in Cognotec's software to a Gibraltar-based firm, Syndicated Capital Investments, set up by Cognotec founder Brian Macabba.

First Derivatives has now entered an exclusivity agreement with Wallace to buy the failed company.

It says it will make "significant investment" in the Cognotec product portfolio, which includes RealStream, a suite for managing FX margins, rates and liquidity, as well as AutoDeal+, an FX pricing and execution engine. The company has not yet provided details on plans for staff.

Brian Conlon, CEO, First Derivatives, says: "First Derivatives will extend Cognotec's product and service capabilities significantly, through increased investment in R&D, together with the cross pollination of intellectual property and expertise in capital markets. First Derivatives has a strong track record of acquiring niche capital markets technology companies and significantly expanding their operations through investment and leverage of synergies with its business."

Founded in 1996, Northern Ireland-based First Derivatives has made several acquisitions recently and now employs 400 people worldwide. In October it bought New Jersey-based data management outfit the Reference Data Factory for an initial consideration of $2.5 million, with an additional $7.5 million reserved for earn-out provision. This followed a deal to take a 15% interest in Californian analytical database vendor Kx Systems for $7.5 million.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Cognotec goes into receivership

Cognotec goes into receivership

29 January 2010  |  9490 views  |  0 comments
First Derivatives acquires the Reference Data Factory

First Derivatives acquires the Reference Data Factory

26 October 2009  |  7559 views  |  0 comments
First Derivatives boosts Kx Systems stake; posts H1 profit rise

First Derivatives boosts Kx Systems stake; posts H1 profit rise

19 October 2009  |  6946 views  |  0 comments
First Derivatives buys US marketing outfit MRP

First Derivatives buys US marketing outfit MRP

15 September 2008  |  5864 views  |  0 comments
Cognotec axes 40 jobs in Dublin

Cognotec axes 40 jobs in Dublin

15 February 2007  |  4184 views  |  0 comments
Maccaba loses 'indecent proposal' case

Maccaba loses 'indecent proposal' case

28 June 2004  |  4832 views  |  0 comments
First Derivatives to float on AIM

First Derivatives to float on AIM

08 February 2002  |  4103 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
Visit https://secure.vasco.comVisit http://go.jumio.com/finextraAdVisit iliad-solutions.com/

Who is commenting?

Top topics

Most viewed Most shared
Calmejane quits Lloyds Bank to join SocGenCalmejane quits Lloyds Bank to join SocGen
13858 views comments | 7 tweets | 8 linkedin
Hong Kong plans September go-live for blockchain-based trade financeHong Kong plans September go-live for bloc...
11473 views comments | 9 tweets | 17 linkedin
Mastercard enlists Worldpay to push Vocalink's Pay by Bank appMastercard enlists Worldpay to push Vocali...
10246 views 19 comments | 15 tweets | 30 linkedin
IBM to test dollar-pegged 'stablecoin'IBM to test dollar-pegged 'stablecoin'
7634 views comments | 4 tweets | 14 linkedin
Bringing about new systems and faster payments globallyBringing about new systems and faster paym...
7498 views comments | 2 tweets | 7 linkedin

Featured job

Competitive base, double ote, benefits
New York City, NY - USA

Find your next job