Beeks Financial Cloud acquires trade analytics software company Velocimetrics

Maria Nikolova

The total consideration includes an initial cash consideration of £0.75 million, an equity payment of £0.30 million, and a further £0.25 million of cash consideration held as retention.

Cloud computing and connectivity provider for financial markets Beeks Financial Cloud Group PLC (LON:BKS) today announces the acquisition of the entire issued share capital of Velocimetrics Limited, a UK-based network monitoring and trade analytics software company, for a base consideration of £1.3 million in cash and equity, plus contingent earn-out.

The acquisition is unconditional and is effective as of April 14, 2020. The consideration comprises an initial cash consideration of £0.75 million which has been paid, an equity payment of £0.30 million to be satisfied by the issue of 363,458 ordinary shares of 0.125 pence par value each, and a further £0.25 million of cash consideration held as retention and payable within four months of completion, subject to no warranty claims having been made.

Earn out consideration may be payable by Beeks depending on the Group achieving certain challenging gross revenue targets during the financial years ending 30 June 2020 and 31 June 2021.

Application has been made to the London Stock Exchange for the 363,458 Initial Consideration Shares to be admitted to trading on AIM. It is expected that admission will become effective and that dealings in the Initial Consideration Shares will commence on or around April 16, 2020.

Beeks has concurrently entered into a new debt facility with The Royal Bank of Scotland plc totalling £1.5 million to fund the acquisition and provide additional growth capital for the enlarged Group.

Regarding the deal rationale, Beeks explains that Velocimetrics operates in a specialist field with few direct competitors. The acquisition is set to enable Beeks to offer value-add services in network monitoring and trade analytics software to its customer base, increasing the functionality within the Beeks Portal and providing another point of differentiation from generic cloud hosting and infrastructure providers. The organic development of these capabilities had been on management’s mid-term product roadmap but would have taken appreciable time and expense.

Velocimetrics reported a loss before tax of £(0.47m) in the year to June 30, 2019. The Directors believe certain cost-reductions and operational synergies can be achieved.

Immediately following the acquisition, Beeks will commence integration of the Velocimetric employees and also commence development work on a SaaS version of the Velocimetrics products, expanding the total addressable market for these offerings and making them more attractive to the existing Beeks’ customer base.

Read this next

Digital Assets

Russian Duma’s working group to address gaps in crypto regulation

A working group formed by the Russian State Duma to tackle the issues of cryptocurrency regulations is set to hold its first meetings, said the head of the parliamentary Financial Market Committee, Anatoly Aksakov.

Digital Assets

Kevin O’Leary says XRP lawsuit is “a very bad idea”

“I have zero interest in investing in litigation against the SEC, that is a very bad idea”.

Industry News

SFC freezes 17 client accounts on suspected ‘pump-and-dump’ scam

Hong Kong’s financial watchdog, the Securities and Futures Commission (SFC), has issued notices to two local brokers, instructing them to freeze certain client accounts suspected of market manipulation.

Retail FX

FSCS starts to offer LCF investors compensation under government scheme

The Financial Services Compensation Scheme (FSCS) has gone live with the government’s redress scheme to reimburse eligible London Capital & Finance victims.

Industry News

Aquis Exchange appoints Glenn Collinson as new Chair

Aquis Exchange, a group of companies that provide services for exchanges, has announced the appointment of Glenn Collinson as its new Chair and he would succeed Niki Beattie effective from January 1, 2022.

Digital Assets

Bitpanda onboards Lydia’s 5.5 million users to white label solution

Lydia has deployed the white label solution, with transactions made by the more than 5 million Lydia customers in a wide range of assets, from crypto to fractional stocks, being executed via Bitpanda for as little as EUR 1.

Digital Assets

Archax deploys Scila AB’s AML and surveillance tech for crypto trading

Scila is very much in tune with digital assets and cryptocurrencies and has some of the largest cryptocurrency exchanges and traders in its client roster.

Institutional FX, Retail FX

ATFX goes all in on US equities: FX broker adds 113 US stock CFDs

With the addition of 113 US stock CFDs, ATFX boasts more than  300 tradable instruments, 273 of which are stock CFD products.

Industry News

Citadel CEO outbids 17,000 crypto investors after winning Short Squeeze Lawsuit

Citadel Securities has been a key source of trading platforms’ revenue, which fed conspiracy theories that the US market maker leaned on their executives to end the short squeeze by restricting users from buying meme stocks.