Paris-based trading and operations software firm GL TRADE, has acquired FNX SOLUTIONS, an American company that specialises in the management and processing of OTC products. The deal will be closed in the course of February 2007.
GL TRADE says the applications created by FNX, which was founded in 1992, will enhance TRADIX, its capital markets offering. FNX SOLUTIONS expects turnover of €11 million in 2006, much of which is recurrent, and predicts turnover growth of 25% per year over the next two years. TRADIX currently generates sales of a little over €4.5 million.
FNX SOLUTIONS is based mainly in the United States and Japan, but is also present in the UK, Thailand, Taipei and Singapore, and owns a development centre in Belgrade. Clients include top tier banks, regional banks, retail operations, hedge funds, and corporates. Most are based in the US and Asia.
“This deal forms part of our strategy to speed up the development of our multi-instrument positioning and reinforce our establishment within the capital markets, as well as for hedge funds and buy side users in general,” added Pierre Gatignol, Chairman and CEO of the GL TRADE Group. “This acquisition will perfectly round out our existing Capital Markets front to back offering, both in terms of functionality and geographically, specifically in the US and Asia, our two regions that are showing strong growth opportunities.”
The combined businesses will generate revenues of about €20 million in 2007, says GL TRADE, which will represent about 10% of the turnover of the Group. Farid Naib, CEO and founder of FNX SOLUTIONS, becomes Global Head of the Capital Markets Front to Back Business Line.
FNX SOLUTIONS’ product offering consists of four main product lines designed mainly for over the counter (OTC) desks at global and regional banks, hedge funds, prime brokers and private banks. FNX SOLUTIONS offers complete, high volume, front to back cross product solutions (FX, money markets, fixed income, derivatives, commodities, equities and exchange traded products) that calculate positions and manage risks, handle middle and back office processing and reporting down to the general ledger level. FNX SOLUTIONS has recently released a complete margin-trading platform for retail clients and prime brokers. FNX SOLUTIONS is also a leader in ASP deployment of its products.
“FNX SOLUTIONS’ products are used by more than forty clients,” says Farid Naib. “Joining GL TRADE will enable us to draw on the business network of one of the leading ISVs, with an excellent presence in continental Europe where FNX SOLUTIONS has not made deep inroads. FNX SOLUTIONS will benefit from GL TRADE’s international coverage, size and reputation which will allow us access to more ambitious client projects.”