First Derivatives (AIM: FDP.L, IEX:GYQ.I), a global technology and service provider to the capital markets industry announced today that it has successfully acquired Cognotec, the global FX technology innovator that delivered the first automated foreign exchange dealing system, as well as the first hosted e-commerce enabled trading platform.
The $4.7m deal means that First Derivatives will acquire the entire intellectual property rights of RealStream, the award winning FX product suite for managing margins, rates and liquidity, as well as AutoDeal+, the widely used FX pricing and execution engine. The deal also secures the team of engineers who support and enhance these innovative products.
Founded in 1996, First Derivatives currently employs over 400 people worldwide and boasts many of the world's top financial institutions as clients. The company has developed its own range of software - Delta - which is in use in many of the top tier investment banks and hedge funds. The Delta suite of products includes algorithmic/program trading solutions, market data solutions and risk management applications. First Derivatives is also a leading provider of capital markets consulting services across the globe and has operational centres in Europe (London and Stockholm), North America (New York, Chicago and Toronto) and Asia (Sydney, Singapore, Hong Kong and Shanghai). This deal is the latest in a series of transactions totalling c$50m which has seen First Derivatives acquire the Australian risk management software company Hologram and the New Jersey based Reference Data Factory, as well as increasing its stake in the Palo Alo based database specialist Kx Systems.
Cognotec was founded 20 years ago and now has operations in Dublin, London, New York, Singapore and Tokyo. The company's AutoDeal+ product, a leading FX pricing and execution engine is widely used throughout the world. More recently, the company has successfully deployed its RealStream product set, an extensive "next generation" product technology suite for the FX market. RealStream delivers direct access to the world's top 15 FX liquidity providers and is already in use at some of the world's largest global FX market players.
First Derivatives CEO, Brian Conlon commented "We are delighted to have completed this acquisition. I am already on record as having said that Cognotec's business, its people and its product portfolio are highly regarded in the FX world. In the last week I have been meeting with many of Cognotec's global clients who have assured me of their continued commitment to RealStream and AutoDeal+. I have also made a commitment that we will extend Cognotec's product and service capabilities significantly through a combination of increased investment in R&D, and cross pollination of the intellectual property and expertise in capital markets of both organisations".
Brian Conlon continued "This will be a coming together of two companies, who share a global client base, as well as a vision to develop innovative, market leading software. 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 existing business. The unparalleled reputation of Cognotec in the FX market will provide the necessary springboard for this to happen."