FD Technologies has decided to part ways with one of its core divisions, First Derivatives, in a move that sees the Northern Ireland company handing over the reins to U.S.-based EPAM for £230 million (€274m). The sale, though awaiting shareholder approval, is set to close by the fourth quarter of 2024. What’s more, after all the necessary financial adjustments and transaction costs, FD expects to walk away with £205 million in net cash. For FD, this isn’t just a deal; it’s a turning point, a moment to refocus on KX, the part of its business that holds the most promise for the future.
Founded in 1996 by the late Brian Conlon, FD Technologies was born out of humble beginnings in a spare bedroom. Now a London-listed powerhouse, it serves global giants in finance, tech, and manufacturing. First Derivatives, the company’s consulting arm, has been a bedrock of FD’s success, but this sale marks a new chapter. The cash infusion will allow the company to zero in on KX, its high-growth division that specializes in real-time analytics. The sale not only paves the way for KX to expand but also helps reduce debt and positions FD for long-term growth.
On EPAM’s end, the acquisition brings 100 new clients into its fold, expanding its influence in the financial services sector. The partnership promises synergies between EPAM’s professional services and FD’s cutting-edge tech, setting the stage for a new wave of innovation. While the deal is significant for both companies, FD’s decision to double down on KX signals that it’s ready to leave its past behind and bet big on the future.
(Source: BBC | FX News Group | Irish Times)
