Software company’s shares up ahead of takeover
A Newry company which provides software to the financial markets industry is set to acquire a Dublin business.
AIM-listed First Derivatives, which employs 200 people in Newry but has offices around the world, said it would continue to invest in Cognotec’s product portfolio following the acquisition, details of which were still being finalised last night.
Cognotec was established 20 years ago by entrepreneur Brian Maccaba but went into receivership on January 22. Its decline began after losing a major customer in 2007. Its software is used for managing foreign exchange margins, rates and liquidity.
The company was formerly valued at £130m but details of how much First Derivatives would pay for the business have not been publicised.
Shares in First Derivatives jumped 7.7% to close at €2.80 on the Irish Stock Exchange last night.
First Derivatives’ software range is used by investment banks and hedge funds but it also provides consulting services to clients.
Brian Conlon, chief executive of First Derivatives, said: “We are delighted with this news, as Cognotec’s business, its people and its product portfolio have always been highly regarded in the foreign exchange world. That is why it has secured a global client base of leading banks and brokers.
“First Derivatives share many of these global clients and we have a strong track record of success in delivering technology solutions to the capital markets industry.”
He added that First Derivatives, which has bought other |financial technology firms |in recent years, will extend Cognotec’s product and service |capabilities significantly.