First Derivatives PLC FD acquires Prelytix for up to USD20million (9006F)
February 26 2015 - 1:02AM
UK Regulatory
TIDMFDP
RNS Number : 9006F
First Derivatives PLC
26 February 2015
26 February 2015
First Derivatives PLC
("FD" or the "Company")
FD acquires Prelytix for up to $20m to boost presence in
marketing technology sector
FD (AIM:FDP.L, ESM:FDP.I), a leading provider of software and
consulting services, today announces it has acquired the entire
issued share capital of Prelytix Inc. ("Prelytix") for an initial
consideration of US$7.5m (GBP4.9m) and a maximum total
consideration of US$20m (GBP13.0m). The acquisition, which will be
earnings enhancing in the Company's financial year to 29 February
2016, expands FD's presence in the fast-growing marketing
technology sector.
The acquisition of Prelytix forms part of FD's strategy to
penetrate additional vertical sectors, beyond its core in capital
markets, using the capabilities of the Delta platform and kdb+. The
combination of an established innovative business in the marketing
technology sector, along with the capabilities of FD's software
will accelerate the route to market for both companies.
Acquisition rationale
Prelytix, a Massachusetts-based software company, specialises in
providing predictive analytics generated from the billions of data
points produced by numerous sources such as real-time advertising
data, website traffic and social media. Many of the world's largest
technology companies such as EMC, HP and IBM are current Prelytix
customers.
Prelytix has been partnering with the Company's marketing
division, Market Resource Partners, to provide these predictive
analytics as part of the Delta Marketing Cloud, the launch of which
was announced in January 2015. The acquisition of Prelytix is a
logical step and creates one of the first end to end marketing
technology firms.
In the year to 31 December 2014, Prelytix reported revenues of
$2.0m and $0.1m of operational EBITDA. The net assets of Prelytix
on acquisition will be $0.1m.
Mike Kelly and Marc Laplante, co-Founders of Prelytix,
commented: "The data we provide results in better intelligence
about prospects and higher revenue opportunities for our clients.
While Prelytix has achieved rapid growth to date, the size of the
data sets we analyse and the complexity of the analytics that has
to be performed against it to unlock the full value of the data,
has been a limiting factor in our ability to scale our business.
With FD and the Delta platform, we look forward to being able to
focus on increasing our customer base and providing even more
sophisticated analytics to help clients maximise their revenue
opportunities."
Terms of the Acquisition
The initial consideration for the acquisition is US$7.5m
(GBP4.9m), of which US$6m (GBP3.9m) is payable in cash and US$1.5m
(GBP1.0m) through the issue of 74,572 FD new ordinary shares.
Deferred consideration of up to US$12.5m (GBP8.1m) is payable on
the achievement of agreed revenue targets over the period to 28
February 2018.
Brian Conlon, Chief Executive Officer of FD, commented: "Digital
marketing is one of a number of vertical markets challenged by
rapid growth in data volumes. This acquisition creates a unique end
to end technology marketing firm with industry leaders at the helm
backed by a software platform and a team of data scientists. This
offers the potential to generate significant revenues for the
Company. The acquisition of Prelytix follows our GBP15.3m share
placing earlier this month to accelerate opportunities in Fast Data
and we continue to target additional vertical markets in which we
have the capability to disrupt. We look forward to updating the
market in due course."
Enquiries:
First Derivatives plc +44(0)28 3025 2242
Brian Conlon, Chief Executive Officer www.firstderivatives.com
Graham Ferguson, Finance Director
Ian Mitchell, Head of Investor Relations
Charles Stanley Securities
(Nominated Adviser and Broker)
Russell Cook
Carl Holmes +44 (0)20 7149 6000
Goodbody Corporate Finance
(ESM Adviser and Broker)
Linda Hickey +353 1 667 0420
Walbrook PR +44 (0)20 7933 8780 or
firstderivatives@walbrookpr.com
Paul Cornelius / Sam Allen / Helen
Cresswell
About First Derivatives
FD is a global technology provider with nearly 20 years of
experience of working with some of the world's largest finance,
technology and energy institutions. It holds a 65% stake in Palo
Alto-based Kx Systems, developer of the world-leading database
technology, kdb+. It employs over 1,200 people worldwide and has
operations in London, New York, Stockholm, Singapore, Hong Kong,
Sydney, Toronto, Philadelphia, Dublin and its headquarters in
Newry.
For further information please visit
www.firstderivatives.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCTAMPTMBBTBTA
Fd Technologies Public (LSE:FDP)
Historical Stock Chart
From Apr 2024 to May 2024
Fd Technologies Public (LSE:FDP)
Historical Stock Chart
From May 2023 to May 2024