UK electronic trading tools provider FFastFill has bought 100% of Exchange Technology, an Australian middle-office software vendor. FFastFill will pay a total consideration of A$2.5 million (US$2.4 million) – equivalent to £1 million in cash plus £0.24 million in shares at 7.125 pence a share.
The company expects the acquisition to be earnings neutral in the first year and earnings enhancing in subsequent years.
FFastFill has bought the company to support its Asia Pacific and middle-office strategy. Exchange Technology has 16 customers in the Asia Pacific region, including 12 global banks, three of which are new customers to FFastFill.
“We expect to be able to leverage these relationships to sell additional FFastFill services in the region and to offer the Asia Pacific Clearing House connectivity to the group’s other global customers,” said Keith Todd, chairman and CEO of FFastFill, in a statement.
According to Todd, FFastFill has historically managed its global service offering from Chicago and London. The Exchange Technology acquisition means the firm is now represented in a third major time zone. “We will be able to support our clients during daylight hours anywhere in the world once the operational support is transferred later in the year,” Todd said.