First Derivatives buys 3 London-based companies
September 28th: Newry-based capital markets consultancy First Derivatives PLC has acquired three London businesses: Redshift Horizons Ltd, which provides design capability for real-time electronic trading; Cowrie Financial Ltd, a provider of application and consulting services for the implementation of trading systems and platforms; and Redshift Horizons LLP, an investment management partnership.

On the Reshift Horizons Ltd purchase, a company statement says that 'Redshift has 15 specialist consultants who engage with key thought leaders within the data market and are involved in building the next generation managed service network for leading business data providers. This acquisition deepens First Derivatives' expertise in the provision of managed services for data and trading systems and will enable the Company to build out a real time trading infrastructure service provision and in the managed deployment of its Delta product suite.'

'Cowrie brings deep domain expertise in the delivery and management of Murex technology to First Derivatives. Murex software is widely used within the capital markets industry across asset classes for trading, risk management and processing. This acquisition will expand First Derivatives’ client base and enhance the Company’s vendor services practice which was launched last year.' Cowrie has 16 permanent employees.

Redshift Horizons Ltd, Cowrie and Redshift Horizons LLP were puchased from founders Tom Kozlowski and Anjum Waheed and others. Following the acquisitions Tom Kozlowski and Anjum Waheed will remain with the company in senior executive roles.

According to Brian Conlon, CEO of First Derivatives, 'In line with our strategy, the acquisitions of Redshift and Cowrie will further enhance the capabilities and scope of our Delta software suite, while further enhancing our vendor services practice. Both companies have successful track records of developing profitable results and excellent service delivery and we believe the expertise of the Redshift and Cowrie teams will prove highly complementary to our workforce of world-class technology professionals.'

Total maximum aggregate consideration for the three acquisitions was £3.15 million. The aggregate operating profit of the three acquisitions in the 12 months to 31st December 2011 was £628,000 and according to First Derivatives the acquisitions are expected to be immediately earnings enhancing, before acquisition related costs. The aggregate net asset value at completion is approximately £150,000.