Specialist Irish software company First Derivatives has announced it has bought Cognotec Holdings for US$4.7 million.
Cognotec, the financial software company launched by Brian Maccaba, went into receivership last month.
Cognotec is a maker of foreign-exchange system software. While the company had substantial contracts in place, it was experiencing cash-flow difficulties. The company is targeting the Top 100 banks in the world with its software offering and the average contract with a top bank could be worth more than US$20 million, but recently the company’s biggest customer cancelled a project.
“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. 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,” said First Derivatives chief executive Brian Conlon.
“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 arena,” Conlon added.
Cognotec employs 40 people in Ireland and a further 25 overseas.
In the year to 30 November, 2008, Cognotec generated revenues of US$18.5 million and reported a loss before tax of US$1.8 million.
At its height, Cognotec employed 140 people in Dublin, London, New York, Tokyo and Singapore and had revenues of US$40 million.
Founded in 1996, First Derivatives is a specialist provider of software and consulting services to the capital markets technology sector.
The company currently employs over 400 people worldwide and counts many of the world’s top investment banks and hedge funds as its customers. It has operations in London, New York, Stockholm, Shanghai, Singapore, Toronto and Hong Kong.
Article courtesy of Businessandleadership.com