CSC moves into on-demand trading space with Fixnetix acquisition
12 August 2015 | 5164 views | 0
Computer services group CSC is to make a concerted push into the provision of managed services for capital markets firms with the acquisition of London-based Fixnetix.
CSC says the proposed acquisition will enable it to offer capital market clients an expanded range of "as-a-service" front office capabilities and will strengthen its ability to address growing demand for greater efficiency in trading, market data, hosting, infrastructure, connectivity and risk management.
Steve Hilton, executive vice president and general manager, global infrastructure services, CSC, says: “This is a transformative market that is ready to embrace an as-a-service utility model, and CSC is uniquely positioned to make this happen with the addition of Fixnetix."
Fixnetix streamlines front-office management and trading systems operations, market information systems and related technology infrastructure. With headquarters in London, the company also has operations in New York, Boston, Chicago and Tokyo.
The deal, which is understood to value the London-based company at $100 million, represent a huge coup for Fixnetix shareholders and management, having been offloaded by IntercontinentalExchange for a nominal sum following the $10 billion acquisition of Nyse Euronext.
The company has benefited from a premium $100m, six-year deal with a large US investment bank last year, which lifted revenues by 37% to £38.2m for the year and turned a previous loss of £2.7 million into a £0.5 million profit.
Hugh Hughes, CEO and chairman of Fixnetix, says: "We will gain the resources that we need to better respond to market demand, effectively address bigger deployments, and build on our established success. CSC’s proven at-scale reputation to deliver across all industries will fundamentally bring greater credibility and presence to Fixnetix.”
Closing of the transaction is expected during the third quarter of 2015.