FD to Buy out Minority Shareholders of Kx Systems by June 2019

The total amount to be paid by the trading technology provider is $53.8 million in cash

Technology provider First Derivatives (FD) announced on Monday that it will buy out the minority shareholders of Kx Systems Inc., a subsidiary of FD. The transaction is expected to take place either on or before June 29, 2019.

Once FD buys out the minority shareholders, who own 600,022 shares, it will own 100 percent of the issued share capital of Kx Systems. According to the statement, the total amount needed to pay is $53.8 million in cash.

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The minority shareholders include the co-founders and current directors of Kx Systems Arthur Whitney and Janet Lustgarten.

The initial agreement was made in October 2014. As per the agreement, FD will pay $12 million to the minority shareholders in lieu of anticipated dividends for the period up to October 31, 2021.

Kx Systems is a subsidiary of FD. It was founded in 1993, and it is a data analysis software developer and vendor. The company provides its customers with tools to process real-time and historical data. It offers in-memory and time-series databases. Kx Systems has two databases, kdb, and kdb+.

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Potential for further growth

Brian Conlon, CEO at First Derivatives
Source: Financial Times

Commenting on the buyout, Brian Conlon, Chief Executive Officer of FD, said: “since we acquired a controlling interest in Kx Systems in October 2014 we have invested heavily across our business to target multiple new industries.

“The agreement to acquire 100% of Kx Systems provides certainty for the Group and its shareholders as we seek to realise the considerable potential we see for further growth.”

Based in Northern Ireland, FD provides products and consulting services to finance technology and energy institutions. The company developed the database technology kdb+. FD is a publicly held company, and it trades on the London Stock Exchange and the Irish Stock Exchange.

Earlier this year, FD released its annual results for 2017. During the year, the company saw a substantial increase in year on year revenue. It also experienced a comparable growth in net profit.

According to the report, the firm also managed to increase its revenue to £186 million ($258.3 million) – a 23 percent year on year increase.

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