This deal provides the sell-side with a full scope managed service solution, allowing them to move away from their in-house managed legacy front to back technology and operations platform towards a 'pay for use model'.

The acquisition comes after a testing period for the securities finance industry, which has seen significantly reduced volumes and operating margins - exacerbated by capital usage regulations. This additional cost of capital has squeezed margins, making the securities lending business untenable for tier two and three sell-side firms.

Commenting on the purchase, Joe Channer, Chief Executive Officer of Delta Capita, said: "Adding Appendium to our existing suite of technology solutions further expands our cross product managed service offering where we are seeing significant demand from clients as they seek to change their business model. The solution will enable clients to overcome what has been a challenging time for the securities industry, and we will operate a standardised service model, supported by expert resources situated both on-shore in London and offshore in Johannesburg, offering significant cost reduction.”

Former Appendium technology founder Benoit Xhenseval, now CTO for Securities Finance at Delta Capita, added: "Designed specifically to support an outsourced model, we are confident that a combination of Appendium’s technology and Delta Capita’s managed services expertise will provide a compelling alternative to aging legacy solutions embedded in banks today.”

Delta Capita is also experiencing rapid growth in its structured products business and continues to play a key role as a managed services consultant to the Plato partnership.