Beeks Financial Cloud Group PLC Acquisition of Commercial Network Services (4392Y)
May 09 2019 - 1:00AM
UK Regulatory
TIDMBKS
RNS Number : 4392Y
Beeks Financial Cloud Group PLC
09 May 2019
This announcement contains inside information
Beeks Financial Cloud Group plc
("Beeks" or "the Company")
Acquisition of Commercial Network Services
Beeks Financial Cloud Group plc (AIM: BKS), a cloud computing
and connectivity provider for financial markets, is pleased to
announce it has acquired the assets of Commercial Network Services
("CNS"), a US-based online service provider, for a total
consideration of up to $1.4 million ('the Transaction').
Highlights
-- CNS specialises in hosting low latency algorithmic trading
systems, virtual private networks and streaming media from data
centres in London, New York and Los Angeles.
-- Founded in 2000, CNS provides services to approximately 1,000
retail traders across multiple geographies.
-- CNS has annualised recurring revenue of approximately $1.0
million and delivered a profit before tax of $0.17 million in the
year to 31 December 2018.
-- The Transaction brings additional customers and datacentre
locations to Beeks' retail offering and is expected to deliver cost
synergies.
-- The Transaction is expected to be earnings enhancing within
the first full year of Beeks' ownership.
This Transaction is in line with the Group's stated strategy to
grow both organically and through tactical and strategic
acquisitions. With an established customer base, high levels of
recurring revenue and strong service offering, the Transaction adds
both scale and cost-synergies to Beeks' retail trader offering.
Under the terms of the Transaction, $1.3 million will be settled
in cash on completion (the "Initial Consideration") with $0.1
million held as retention subject to satisfactory completion of
warranties (the "Contingent Consideration"). The Initial
Consideration and Contingent Consideration will be financed out of
the Group's existing cash balance and banking facilities.
Gordon McArthur, CEO of Beeks Financial Cloud commented:
"At the time of our IPO we stated our belief that the fragmented
nature of our industry would provide us with the potential to
augment our organic growth with both bolt-on and strategic
acquisitions. Commercial Network Services is a profitable business
whose services reflect those we offer to retail traders. The
business therefore fits well within our acquisition criteria and we
anticipate will be a valuable addition to the Group."
For further information please contact:
Beeks Financial Cloud Group plc
Gordon McArthur, CEO via Alma PR
Fraser McDonald, CFO
Cenkos Securities plc +44(0)131 220 6939
Derrick Lee / Beth McKiernan
Alma PR +44(0)20 3405 0212
Caroline Forde / Josh Royston / Helena
Bogle
ABOUT BEEKS FINANCIAL CLOUD
Beeks Financial Cloud is a UK-based low-latency
Infrastructure-as-a-Service (IaaS) provider for automated trading
in Forex, Futures, Equities, Fixed income and cryptocurrency
financial products. With eleven data centres globally and
low-latency connectivity between sites, the Beeks Financial Cloud
focuses on reducing barriers to entry and time to market for
institutional clients. For more information, visit:
www.beeksfinancialcloud.com.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
ACQUWRWRKBAVRAR
(END) Dow Jones Newswires
May 09, 2019 02:00 ET (06:00 GMT)
Beeks Financial Cloud (LSE:BKS)
Historical Stock Chart
From Apr 2024 to May 2024
Beeks Financial Cloud (LSE:BKS)
Historical Stock Chart
From May 2023 to May 2024