The deal, expected to close in Q4 2024, aims to streamline operations and return cash to shareholders.
FD wants to focus on its KX analytics division.
FD
Technologies announced today (Monday) that it has agreed to sell its First
Derivative Business to EPAM Systems, Inc. for £230 million ($290 million),
marking a significant restructuring for the Northern Irish technology firm.
FD Technologies Sheds
First Derivative in $290M Deal
The
divestment, expected to close in Q4 2024 pending shareholder approval, comes as
the culmination of a strategic review initiated by FD Technologies in March.
The move aims to streamline the company's focus on its KX division, which
specializes in real-time analytics and AI-driven solutions.
"This
divestment is positive for all stakeholders," said Seamus Keating, CEO of
FD Technologies. "It enables the Group to focus on KX and provides the
resources to deliver on our exciting growth plans while also enabling us to
return excess cash to shareholders."
The
transaction is projected to generate net cash proceeds of approximately £205
million after adjustments and costs. FD Technologies plans to use the funds to
repay about £20 million in net debt and return excess cash to shareholders,
with details to be announced in November.
For the
first half of fiscal year 2025 ended August 31, FD Technologies reported that
both KX and the First Derivative Business performed in line with expectations.
KX added £7.4 million in annual contract value, while the First Derivative
Business saw revenues of approximately £79 million, similar to the second half
of the previous fiscal year.
Based on the financial results for fiscal year 2024 (FY24), the company reported a total revenue of £248.9 million. The KX division demonstrated strong performance, with a 12% increase in revenue when measured in constant currencies, reaching £79 million2. Notably, the recurring revenue component saw significant growth, rising by 19% compared to the previous year2. As a result, recurring revenue now constitutes 86% of KX's total revenue, up from 81% in the prior fiscal period2.
"Bringing
together the First Derivative Business and EPAM marks the beginning of a
distinctive enterprise that will not only enhance value for our clients but
also foster substantial growth opportunities for our teams,” Balazs Fejes,
President of Global Business at EPAM, stated.
The
divestment is subject to shareholder approval at an upcoming general meeting,
expected to take place in October. FD Technologies will provide further details
on its strategic progress and trading performance in its interim results,
scheduled for release in November.
FD
Technologies announced today (Monday) that it has agreed to sell its First
Derivative Business to EPAM Systems, Inc. for £230 million ($290 million),
marking a significant restructuring for the Northern Irish technology firm.
FD Technologies Sheds
First Derivative in $290M Deal
The
divestment, expected to close in Q4 2024 pending shareholder approval, comes as
the culmination of a strategic review initiated by FD Technologies in March.
The move aims to streamline the company's focus on its KX division, which
specializes in real-time analytics and AI-driven solutions.
"This
divestment is positive for all stakeholders," said Seamus Keating, CEO of
FD Technologies. "It enables the Group to focus on KX and provides the
resources to deliver on our exciting growth plans while also enabling us to
return excess cash to shareholders."
The
transaction is projected to generate net cash proceeds of approximately £205
million after adjustments and costs. FD Technologies plans to use the funds to
repay about £20 million in net debt and return excess cash to shareholders,
with details to be announced in November.
For the
first half of fiscal year 2025 ended August 31, FD Technologies reported that
both KX and the First Derivative Business performed in line with expectations.
KX added £7.4 million in annual contract value, while the First Derivative
Business saw revenues of approximately £79 million, similar to the second half
of the previous fiscal year.
Based on the financial results for fiscal year 2024 (FY24), the company reported a total revenue of £248.9 million. The KX division demonstrated strong performance, with a 12% increase in revenue when measured in constant currencies, reaching £79 million2. Notably, the recurring revenue component saw significant growth, rising by 19% compared to the previous year2. As a result, recurring revenue now constitutes 86% of KX's total revenue, up from 81% in the prior fiscal period2.
"Bringing
together the First Derivative Business and EPAM marks the beginning of a
distinctive enterprise that will not only enhance value for our clients but
also foster substantial growth opportunities for our teams,” Balazs Fejes,
President of Global Business at EPAM, stated.
The
divestment is subject to shareholder approval at an upcoming general meeting,
expected to take place in October. FD Technologies will provide further details
on its strategic progress and trading performance in its interim results,
scheduled for release in November.
Damian's adventure with financial markets began at the Cracow University of Economics, where he obtained his MA in finance and accounting. Starting from the retail trader perspective, he collaborated with brokerage houses and financial portals in Poland as an independent editor and content manager. His adventure with Finance Magnates began in 2016, where he is working as a business intelligence analyst.
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