Derivatives trading and risk management solutions provider Patsystems has entered an agreement to buy Mixit, a US based developer and vendor of sell-side order management systems and execution management systems for equities and options trading.
Founded in 2004, Mixit reported turnover of US$9.2 million for the financial year ended 31 March 2011. Its revenue compound annual growth rate for the preceding three years was 37%. Mixit currently has 170 customers, with some 800 OMS workstation and 2,500 FIX connections. Mixit's routing network encompasses buy-side firms, exchanges, brokers, crossing venues and dark pools. The company also operates a subsidiary, Mixit Technologies, which is responsible for operational support and software development, based in Karachi, Pakistan.
Patsystems expects the merger to add product and asset class diversity to its offering, particularly in equities. The deal will also provide opportunities for revenue synergies from cross-selling Mixit products through Patsystems' sales network. In addition, Mixit customers' futures trades will be routed via Patsystems' global network of derivatives market connections.
The initial Patsytstems consideration for Mixit is £12.57 million, with a payment of £8.5 million in cash and the issue of 17.7 million ordinary shares to the owners of Mixit.
“The combination of these two complementary technology firms creates a powerful global offering of products and services,” said Walter Fitzgerald, president and CEO of Mixit. “Patsystems' existing global footprint along with Mixit's extensive network provides the infrastructure for our products to be distributed seamlessly worldwide and offer clients access to global multi-asset electronic trading technology.”
Patsystems has also selected the City of London data centre operated by service provider Interxion to host its recently launched London access point. Market participants can now connect to Patsystems’ XConnect global application service provider network via the Interxion centre, enabling them to access futures markets as well as Patsystems’ suite of front-end trading tools without the need to invest in proprietary hardware infrastructure or technical support.