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LONDON (Alliance News) - First Derivatives PLC on Tuesday said it has acquired QuantumKDB (UK) Ltd for up to GBP2.2 million, in a move to bolster the software and consulting company's Kx business.
Quantum, which is expected to add to First Derivatives' earnings in the first full year following the acquisition, is a consultancy founded in 2011 by Kieran Lucid, its chief executive. First Derivatives will pay initially about GBP600,000 in cash and GBP1.1 million by issuing 72,940 new shares, with a further amount of up to GBP500,000 to follow 12 months after the acquisition is made depending on performance targets.
Shares in First Derivatives were up 0.3% at 1,520.00 pence on Tuesday morning.
According to Quantum's website, Lucid has a background in electrical engineering and has worked at institutions including Bank Of America, Liquidnet, Barclays Capital and Deutsche Bank.
Quantum made a pretax profit of about GBP300,000 in the financial year ended September 31, according to First Derivatives, and had a book value of roughly GBP250,000 on acquisition.
First Derivatives is known for its training courses on the kdb+ financial services system. kdb+ is the lead product of Kx Systems, the Californian 'Big Data' company in which First Derivatives has a 65% stake.
"As the home of Kx technology, First Derivatives is a natural fit for us. We are joining at a time of rapid expansion in the Kx client base across industry sectors, as more and more clients appreciate the benefits of this technology that has dominated capital markets for more than 10 years. We are excited about drawing on the expertise we've gained to assist the group in its ambitious plans for the future," Quantum's Lucid said.
Like First Derivatives, many of Quantum's clients fall within the capital markets space, and Tuesday's statement suggested there is some overlap of customers.
First Derivatives said the acquisition "will strengthen the group's relationship with certain key clients as well as adding to the existing customer base". Quantum has a total of 15 consultants with experience in Kx technology, it said.
"We are experiencing increasing demand for Kx skills from existing and potential customers and the acquisition of Quantum will add to our existing capabilities and support our growth plans. We welcome its staff to the group," Brian Conlon, chief executive of First Derivatives, said.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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