Software firm in Cognotec buyout
Newry-based financial software business First Derivatives has agreed to pay up to £3m for a Dublin firm in the same sector.
AIM-listed First Derivatives said it was “delighted” to buy the assets of Cognotec, which was placed in receivership last month.
The deal includes Cognotec’s full intellectual property rights.
Cognotec made losses of £1.1m in the year to November 30 2008. Its assets were worth £1.9m last November.
First Derivatives said one tenth of its £3m payment would be held back until delivery of “certain agreements” by the receiver. The total sum will come from cash from its existing banking facilities.
A spokesman added: “The directors believe that the transaction will be earnings-enhancing in the current year.”
Cognotec’s staff are expected to be retained by First Derivatives, except for some working in central functions.
First Derivatives chief executive Brian Conlon said: “I am delighted to announce the acquisition of Cognotec's key assets and intellectual property.
“Cognotec’s flagship products are complementary to the products in the First Derivatives Delta suite and share a common technology base.
“Its AutoDeal+ has a large installed customer base and the RealStream product, which adds to our stable of innovative technology offerings, is in the process of live rollout at some of the world’s largest retail FX brokers in Europe, Asia and North America.
“The reputation of First Derivatives for deep domain expertise will be further enhanced with the addition of Cognotec’s vastly experienced development and professional services teams.
“This investment further reinforces our position as one of the world’s foremost providers of solutions in the market data and electronic trading area.”
The firm was founded in 1996.