Beeks Financial Cloud Group told Finance Magnates on Thursday that it has acquired Commercial Network Services (CNS). The cloud computing and connectivity provider said that it paid $1.4 million for CNS’ assets.
Founded in 2000, CNS hosts low latency algorithmic trading systems, virtual private networks, and streaming media from data centers in London, New York, and Los Angeles.
The San Diego-based firm claims to serve approximately 1,000 retail traders from across the globe.
Financial reports released by the company indicate that it made $1 million in revenue last year, with a profit of $170,000.
In line with company plans
Beeks’ said that its purchase of the company is in line with its strategy of scaling through organic growth and acquisitions.
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The cloud computing services provider added that CNS will help it to grow, and improve pricing for, its retail trading business.
“At the time of our IPO we stated our belief that the fragmented nature of our industry would provide us with the potential to augment our organic growth with both bolt-on and strategic acquisitions,” said Gordon McArthur, Beeks’ chief executive officer.
“[CNS] is a profitable business whose services reflect those we offer to retail traders. The business therefore fits well within our acquisition criteria and we anticipate will be a valuable addition to the Group.”
McArthur’s firm will complete its acquisition with a $1.3 million cash payment. The remaining $100,000 will, according to a statement issued by the firm, be “held as retention subject to satisfactory completion of warranties.”
The costs of the deal will be financed by cash funds already held by Beeks. The cloud computing firm said that it expects the deal to enhance earnings after its first full year of ownership.