First Derivatives buys London firms

Newry-based specialist financial software company First Derivatives has bought three London-based businesses, spending £3.15 million on the niche firms.

The company announced the acquisition of Redshift Horizons Ltd, which provides design capability for real-time electronic trading systems; investment management partnership Redshift Horizons LLP; and application and consulting services firm Cowrie Financial.

The deal includes £2.05 million to be paid on completion, about £450,000 of loan notes, and £650,000 of deferred consideration.

The three firms had a combined operating profit of £628,000 in the 12 months to December 31st 2011. The acquisitions are expected to be immediately earnings enhancing, before acquisition related costs.

About 22 permanent employees will be added to First Derivatives as a result.

Chief executive Brian Conlon said the acquisitions were in line with the company’s strategy and would further enhance the capabilities and scope of its Delta software suite.

“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," he said.