First Derivatives PLC Telco Acquisition (8863Y)
December 11 2017 - 1:00AM
UK Regulatory
TIDMFDP
RNS Number : 8863Y
First Derivatives PLC
11 December 2017
11 December 2017
First Derivatives plc
("FD" or the "Group")
Telco acquisition
FD (AIM:FDP.L, ESM:FDP.I) announces that it has acquired the
entire issued share capital of Telconomics09 S.L ("Telconomics"), a
privately-held provider of telco analytics software, for a total
consideration of up to EUR2.5m. The acquisition is expected to be
earnings enhancing in its first full year and forms part of the
Group's continuing strategy to target the telco market with its Kx
technology, where it sees significant opportunities.
Acquisition rationale
Telconomics is based in Madrid, Spain and was formed in 2009 to
provide analytics consulting for telco network operators. It has
also recently developed a number of software products, notably
INTEF, a platform to perform critical activities such as network
development strategy, network planning and network optimisation. It
is intended that INTEF will be subsumed into the Kx Telco Solutions
suite, incorporating the kdb+ in-memory database, which enables
real-time data ingestion and provides time series capabilities for
operations support, fraud detection, clickstream analysis and
proximity marketing.
According to industry analysts Ovum, the telco operations
support systems market will reach $17 billion in 2017. In attacking
this market, Kx will target potential customers ranging from large
telco network providers to service companies that manage network
analytics on behalf of their clients.
The founders of Telconomics - Alfonso Campo, Javier Lazaro and
Juan Blazquez - will remain in their current roles.
Terms of the Acquisition
The initial consideration for the acquisition is EUR0.9m
(GBP0.8m) of which EUR0.4m (GBP0.4m) is payable in cash and EUR0.5m
(GBP0.4m) is payable through the issue of 12,199 new ordinary
shares in FD (the "Consideration Shares"). Deferred consideration
of up to EUR1.6m (GBP1.4m) is payable on the achievement of certain
performance targets over the three year period post acquisition. In
the year to 31 December 2016, Telconomics generated revenue of
EUR0.8m and EBITDA of EUR0.3m.
Application has been made for the 12,199 Consideration Shares to
be admitted to trading on AIM and ESM and it is expected that
admission will take place on 14 December 2017. The Consideration
Shares will rank pari passu with the Company's existing ordinary
shares in issue. Following admission of the Consideration Shares,
the total issued share capital of the Company will be 25,418,501
ordinary shares.
Alfonso Campo, Chief Executive Officer of Telconomics,
commented: "Kx is the perfect platform to handle the demanding
challenges posed by the volume and velocity of data generated by
telco networks. The combination of the solutions Telconomics has
developed, based on our extensive industry experience, with the
power of Kx provides a compelling proposition for operators seeking
to optimise the performance of their networks."
Brian Conlon, Chief Executive Officer of Kx, commented: "Telco
is one of our key target verticals and we believe that this
acquisition will help turbo charge our growth in this area. The
products, domain expertise and customer contacts provided by
Telconomics, supplemented by our data science, machine learning and
engineering resources, provide the opportunity for significant
returns."
Enquiries
For further information please contact:
First Derivatives plc +44(0)28 3025 2242
Brian Conlon, Chief Executive www.firstderivatives.com
Officer
Graham Ferguson, Chief Financial
Officer
Ian Mitchell, Head of Investor
Relations
Investec Bank plc (Nominated
Adviser and Broker)
Andrew Pinder
Carlton Nelson
Sebastian Lawrence +44 (0)20 7597 5970
Goodbody (ESM Adviser and
Broker)
Linda Hickey
Finbarr Griffin +353 1 667 0420
FTI Consulting
Matt Dixon
Dwight Burden
Darius Alexander
Niamh Fogarty +44 (0)20 3727 1000
About FD
FD is a global technology provider with 20 years of experience
working with some of the world's largest finance, technology,
retail, pharma, manufacturing and energy institutions. The Group's
Kx technology, incorporating the kdb+ time-series database, is a
leader in high-performance, in-memory computing, streaming
analytics and operational intelligence. Kx delivers the best
possible performance and flexibility for high-volume,
data-intensive analytics and applications across multiple
industries. FD operates from 14 offices across Europe, North
America and Asia Pacific, including its headquarters in Newry, and
employs more than 2,000 people worldwide.
For further information, please visit www.firstderivatives.com
and www.kx.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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