First Derivatives agrees to buy out minority shareholders of Kx Systems

Maria Nikolova

The aggregate consideration is $53.8 million in cash, to be financed from FD’s available facilities.

First Derivatives plc (LON:FDP) has earlier today announced that it has reached agreement with the minority shareholders of its subsidiary Kx Systems, Inc., regarding the acquisition by FD of their entire remaining shareholding.

The finalization of the transaction is expected on or before June 29, 2019. Once the transaction is completed FD will own 100% of the issued share capital of Kx Systems.

Under the terms of the deal, First Derivatives has agreed to acquire the remaining 600,022 Kx Systems shares that it does not already own from the minority shareholders, namely Arthur Whitney and Janet Lustgarten, who are co-founders and current directors of Kx Systems, and their associated persons.

The aggregate consideration is $53.8 million in cash, to be financed from FD’s available facilities. The terms of the transaction are in line with those agreed between FD and the minority shareholders in October 2014, and include a payment of $12 million in lieu of anticipated dividends to the minority shareholders for the period up to October 31, 2021.

Brian Conlon, Chief Executive Officer of FD, says:

“Since we acquired a controlling interest in Kx Systems in October 2014 we have invested heavily across our business to target multiple new industries. The agreement to acquire 100% of Kx Systems provides certainty for the Group and its shareholders as we seek to realise the considerable potential we see for further growth.”

FD’s proprietary Kx technology captures and analyses vast quantities of data, both real-time and historic. Kx comprises the kdb+ database and an enterprise layer providing vital functions such as control and visualisation. Together they provide a platform that enables organisations to meet various data challenges they face, with an efficient design. These core capabilities, along with the capacity to operate on the chip, edge or cloud delivers a compelling solution for FD’s clients. The software has been deployed for edge computing to public environments such as AWS, Azure and the Google cloud.

The preliminary results for the year ended February 28, 2018 have shown that revenue from FD’s most mature market, FinTech, increased by 22% to £142.9 million. Revenue from MarTech increased by 24% to £38.2 million. In this market, FD leverages the power of Kx to deliver a full B2B account-based marketing platform, with an emphasis on predictive analytics using intent data from Internet search.

Read this next

Retail FX

Banxso announces 8.7% interest rate on deposits in South Africa

“With Banxso, they can enjoy the benefits of both worlds – earning competitive interest and having the freedom to trade, all within the same platform.”

Industry News

FINRA to publish transaction details in U.S. Treasury securities

“Consistent with our longstanding practice, FINRA is introducing greater transparency in a calibrated and careful manner, benefiting liquidity and resilience in this critical market while also mitigating potential information leakage concerns.”

Institutional FX

OpenYield launches “cheap and easy” fixed income trading for brokers

“We’re on a mission to make bonds cheap and easy to trade, and are excited about the opportunity to build generational capital markets infrastructure.”

Digital Assets

Sumsub and Mercuryo publish a guide for VASPs: “Mastering Travel Rule Compliance”

“At Sumsub, we’ve concentrated our efforts on filling the gap in understanding the complexity of Travel Rule regulation and helping organizations find the best solution to stay safe and compliant while minimizing costs and avoiding potential risks of non-compliance. This guide we created with Mercuryo, our trusted partner, is the ultimate navigation tool all VASPs can consult.”

Digital Assets

Bitget Wallet Leads with Record Swap Volume & New Crypto Innovations

This week, Bitget Wallet achieved a milestone by surpassing Metamask with a record 388,757 Swap order transactions, securing the global lead. The significant 7-day trading volume, almost 68,000 more than its rival, underscores its liquidity and user trust. This robust activity signals Bitget Wallet’s prominent role and reliability in the dynamic crypto market.

Digital Assets

Embarking on a Digital Currency Journey

Imagine you’ve stumbled upon a treasure map, leading you to untold riches hidden in the vastness of the internet. Instead of gold coins and jewel-encrusted goblets, this treasure comes in the form of digital currencies, the modern-day loot coveted by many.

Reviews

Traders Union Experts Share The Trading Analyst Review For 2024

Navigating options trading in rapidly shifting markets poses a considerable challenge. This is where options trading alert services become invaluable. They aid traders in keeping abreast of evolving opportunities and market trends. In this assessment, Traders Union experts scrutinize The Trading Analyst alert service to ascertain its efficacy. 

Digital Assets

BlockDAG’s Presale Achieves $9.9M: Aiming For A 5000-Fold ROI As Cardano’s Price Rises And Fantom Launches Sonic

Explore Cardano’s surge, Sonic’s efficiency, and why BlockDAG’s growth makes it the top crypto choice. A deep dive into the future of blockchain investments.

Digital Assets

US, UK probe $20 billion Tether transfers tied to Russian exchange.

U.S. and UK authorities are investigating the movement of $20 billion in the USD-pegged stablecoin tether (USDT) through Moscow-based exchange Garantex.

<