FD has acquired ActivateClients Limited, in a deal worth EUR4.75m (GBP3.4m), of which EUR1.5m (GBP1.1m) is payable in cash and EUR3.25m (GBP2.4m) is payable through the issue of 183,185 FD new ordinary shares.
The earnings enhancing acquisition provides complementary software products, particularly HTML5 capabilities, that are expected to enhance the FD’s software platform.
The vendors of ActivateClients include Pat Brazel and Keith MacDonald, who are Non-Executive Directors of FD. Following the acquisition Brazel, who is Chief Executive Officer of ActivateClients, has been appointed Global Head of Software Sales for FD and will step down from the Board of the Company.
ActivateClients, based in Dublin, Ireland, is a software business targeting financial markets and specialising in delivering applications and trading systems that increase customer engagement for its clients. It uses agile software development methods and delivers solutions either on premise or through a Software as a Service model. Its HTML5 capabilities are particularly attractive to FD and the Company intends to accelerate its product development roadmap through wider use of HTML5 following this acquisition.
ActivateClients operates for clients across the broking, institutional foreign exchange and fixed income markets. In addition ActivateClients has formed three joint ventures; ActivateAlpha, a provider of quantitative analysis software to fund and wealth managers; Active Tradercast, a web-based system to link retail traders and provide research and analysis; and Enhanced Bond Analytics, a proprietary software system designed to identify arbitrage opportunities in G7 sovereign debt markets.
Brazel says: “ActivateClients’ achievement has been built on the technical expertise and dedication of our team and I am sure that our products and front office development capabilities will be a significant asset to FD. We look forward to working with our new colleagues and being part of the continuing FD success.”
Brian Conlon, Chief Executive Officer of FD, says: "ActivateClients is a low-risk, earnings-enhancing acquisition for the Company that will deliver synergies on a number of levels. It provides additional technology capabilities, particularly in HTML5, and its staff possess software development skills that will be useful across a range of projects FD is working on. We welcome its staff to the Company."
