Pico acquires Redline to extend expertise in market data
Redline provides ultra-low latency software solutions and common APIs to over 180 global venues.
Pico has acquired Redline Trading Solutions, a provider of high performance trading and market data software solutions in order to promote synergies with its low latency infrastructure and network underpinned by Corvil Analytics.
The deal is expected to accelerate Pico’s recurring revenue business, adding Redline’s 100% recurring revenue model, with significant opportunity to cross-sell solutions to Pico’s existing client base.
Greater efficiency in market infrastructure services and data consumption
This is a key milestone in Pico’s vision to become a leading provider of technology, software, data and analytics solutions to the financial markets.
The acquisition of Redline’s multi-asset software solutions will provide access to a common API for global markets, both real-time and historical, delivered via Pico’s global network.
The combined offering reduces complexity by allowing trading firms to optimize market access and coverage and trading stack performance in a seamless manner.
Jarrod Yuster, Chairman, Founder and Co-CEO of Pico, commented: “As the trading environment becomes more globalized and continues to produce increasing amounts of data, clients are seeking greater efficiency in market infrastructure services and data consumption.
“Financial institutions want a trusted and globally comprehensive technology partner who understands their business, the market landscape and how to apply technology solutions. Combining Redline’s premier ultra-low latency trading and software solutions with Pico’s broad infrastructure, cloud and data offering, and industry leading Corvil Analytics, positions Pico uniquely to address these client needs and market challenges.”
“I have admired Redline and what they have accomplished over the years,” continued Yuster. “Pico and Redline are aligned in our values, culture and expertise, and share a deep passion for meeting the needs of clients. We are excited to welcome the Redline team to Pico and to bring together two high performance technology engineering teams. There is a significant addressable market for global data consumption via software and a common API, and we will continue to invest in Redline further leveraging Pico’s global network and infrastructure coverage.”
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Increased client opportunity and a further expansion of in-house expertise
The acquisition follows the successful integration of Corvil Analytics, the financial markets trade monitoring and performance platform which extended Pico’s expertise into analytics and data science.
Redline had previously been backed by GS Growth, the growth investing arm of Goldman Sachs. The acquisition will contribute to Pico’s growth strategy by adding Redline’s fully recurring revenue stream and high-margin business through increased client opportunity and a further expansion of in-house expertise.
Providing ultra-low latency software solutions and common APIs to over 180 global venues, Redline serves a client roster that includes global banks, quantitative hedge funds, electronic trading firms, ETF market-makers and exchanges.
Mark Skalabrin, Founder and CEO of Redline, said: “Pico has built one of the most comprehensive global platforms in our industry, and I am excited that Redline will now be part of their ongoing success. We have partnered on past initiatives, and we will now be able to access Pico’s globally deployed service organization, leading analytics and infrastructure footprint to scale our offerings to more geographies. We foresee great collaboration between our teams in the coming years in order to continue to meet clients’ evolving needs.”
