Brady (BRY.L), the leading global supplier of trading, risk management and settlement solutions to the metals and commodities sectors, has announced the acquisition of Commodities Software (UK) Limited, known as Comsoft, a privately held UK-based company. Comsoft will now become part of Brady plc.
In the highly focused and specialised world of commodities, Brady is the leader in metal trading solutions; Comsoft is a leading supplier of raw material solutions. The acquisition will position Brady as uniquely able to provide the most sophisticated trading and risk management solutions for refined and unrefined metals. Brady and Comsoft already share prestigious metal trading clients.
The offerings of the two companies are complementary and will provide a single solution for trading and risk management of raw materials, including contract capture, invoicing, QP schedule, mark-to-market, assaying, hedging, financing and credit risk. Given the extreme volatility of metal prices it is essential to have integrated solutions for trading and risk management. The solution will provide a platform for transparency and compliance, a pre-requisite in today's environment.
Comsoft has an impressive client base, complete intellectual property rights and its principals have more than 25 years of knowledge and expertise in the raw materials business. The transaction is financed from Brady's existing cash reserves. No headcount reductions or cost savings are planned as Brady intends to invest to accelerate growth.
Gavin Lavelle, CEO of Brady plc, commented: "This is a fantastic start to the year for Brady. The acquisition of Comsoft is a significant milestone in our strategy of being the definitive global provider and partner of choice for trading, risk management and settlement solutions to the metals and commodities industries. Our clients will have the most advanced offering for refined and unrefined metals. Comsoft and its clients will benefit from Brady's global reach and worldwide support and development resources. The deal provides an opportunity to accelerate our future growth and we anticipate that the deal will enhance the earnings per share." He went on to say: "Brady is cash positive and has an appetite for the right acquisitions at the right price."
Says Ian Kingdon, Managing Director at Comsoft: "As the leader in this market sector we see Brady as a natural partner. The acquisition will benefit Comsoft and Brady clients, offering the marketplace an outstanding product set. We are very much looking forward to working with Brady to develop our products further and help grow the company."
Comsoft was formed in 1994 by Ian Kingdon and Paula Flint with each owning 50% of the company. Comsoft's headquarters are in the UK, with clients in the UK, USA, Switzerland and Turkey.
Brady clients include many of the world's largest miners, refiners and producers tier one banks and a large number London Metal Exchange (LME) Category 1 and 2 clearing members.
Brady was advised on the transaction by Goldenhill Technology Advisors. Noting the contribution of Goldenhill to the transaction, Gavin Lavelle stated: "Goldenhill has provided us with first-rate service working very closely with us to identify, evaluate and select Comsoft as a fitting acquisition opportunity for Brady. Their knowledge of the fintech sector and experience in the M&A process has been of real value to us in this project. Goldenhill's commitment and perseverance in the transaction never wavered and we look forward to continuing our working relationship with them."