First Derivatives goes on acquisition spree

First Derivatives goes on acquisition spree

Irish capital markets tech house First Derivatives has acquired three London-based businesses for a total consideration of up to £3.15 million as it looks to expand its managed services business.

The firm has bought Redshift Horizons Ltd, a provider of design capability for real-time electronic trading systems; Redshift Horizons LLP, an investment management partnership; and Cowrie Financial, which offers application and consulting services for the implementation of trading systems.

The aggregate operating profit of the three in the year to 31 December 2011 was £628,000 and First Derivatives says they should be immediately earnings enhancing, before acquisition related costs.

Redshift has 15 specialist consultants who work on managed service network for business data providers. First Derivatives says that they will add to its expertise in this area and help it to build out a real-time trading infrastructure service provision and contribute to the managed deployment of its Delta product suite.

Cowrie, which has 16 employees, offers expertise in Murex software, which is widely used within the capital markets industry. It will expand First Derivatives' client base and boost its vendor services practice, which was launched last year.

The three firms are owned by founders Tom Kozlowski and Anjum Waheed - who will both remain onboard - and "others".

Brian Conlon, CEO, First Derivatives, says: "In line with our strategy, the acquisitions of Redshift and Cowrie will further enhance the capabilities and scope of our Delta software suite, while further enhancing our vendor services practice."

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