First Derivatives in £2.2m deal to buy Spanish telecoms firm
A Newry financial software firm has acquired a Spanish telecoms company in a €2.5m (£2.21m) deal.
First Derivatives plc (FD), a provider of products and consulting services to global finance, technology and energy institutions, announced that it acquired Madrid-based Telconomics as part of a growth strategy.
Telconomics provides analytics consulting and software products to telecommunication firms. It was formed in 2009 and its three founders, Alfonso Campo, Javier Lazaro and Juan Blazques, will remain in their roles.
The buyout is part of FD's strategy to target the telecoms market with its Kx technology. The telco operations support systems market is forecast to reach $17bn (£12.7bn) this year.
FD paid €0.9m (£0.8m) upfront, with a further payment of €1.6m (£1.4m) due if performance targets are met.
Brian Conlon, chief executive of Kx, said: "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."
The deal comes shortly after FD said it would add a further 500 new staff to its workforce next year after posting a surge in sales to almost £90m for the first half of 2017.
Overall, its turnover rose by 22% to £87.8m for the first six months of 2017.
The company has hired 450 staff this year, and Adrian Toner, chief operating officer, said that it could add the same, or more, next year. The firm employs around 2,100 workers across 14 locations.