FinTechDeals

FD Technologies plc has completed the sale of its First Derivative business to US software company EPAM Systems Inc for an enterprise value of £230 million.

FD Technologies, listed in London and on the Euronext exchange headquartered in Amsterdam, is headquartered in Newry, Northern Ireland. It is a provider of products and consulting services to some of the world’s largest finance, technology and energy institutions.

First Derivative is a dedicated capital markets consulting team with more than 1,800 employees worldwide. The move follows the merger of FD’s marketing technology division MRP with US firm CONTENTgine, announced in March, which was the first step of a structural reorganisation.

FD Technologies plc says the latest deal will enable the company to focus on its KX software business and provide the funding for it to become cash generative.

It also “generates synergies for KX through a partnership with EPAM to provide professional services capabilities in key markets”.

The deal also enables the repayment of the group’s net debt of around £20m and facilitate the return of excess cash to shareholders.

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“As we complete this acquisition, we are excited to welcome First Derivative’s talented team and client base to EPAM,” said Balazs Fejes, president of global business and chief revenue officer at EPAM. 

“This partnership brings together EPAM’s digital, AI, cloud and engineering capabilities with First Derivative’s expertise in financial services. Whilst First Derivative has historically been a key player in financial services and capital markets, we see significant opportunity to apply First Derivative’s specializations in regulated industries and implementations of specialized commercial software solutions to our wider customer base.”

EPAM said it will leverage First Derivative’s strong industry experience and brand to deliver a comprehensive set of AI-enabled capabilities to clients in banking, capital markets and other financially regulated businesses across North America, Europe and APAC.

“We are pleased to officially join forces with EPAM, a partner whose commitment to technological innovation aligns perfectly with our vision,” said David Collins, CEO, First Derivative. 

“Together, EPAM and First Derivative offer strengthened financial services to clients, empowering operational insights, driving innovation and more effectively managing risk in an increasingly data-driven landscape.”

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