7th Oct 2024 11:31
(Alliance News) - FD Technologies PLC on Monday said it aims to fundamentally change its business to focus on KX, which it noted had the largest value creation potential.
The County Down, Northern Ireland-based group of data-driven businesses, including technology and digital solutions providers KX, First Derivative, and MRP, said it has struck a deal to sell its First Derivative business in a deal that will be classed as a "fundamental change of business" according to listing rules.
The AIM-listed owner of data-driven businesses said the division will be sold for GBP230 million to EPAM Systems Inc.
Subject to shareholder backing, FD expects to complete the transaction this quarter.
FD said the deal enables it to focus on KX, the part of the business it believes has the "largest value creation potential".
The sale also "facilitates the return of excess cash to shareholders", with FD adding it will provide more details on that in its interim results next month.
Balazs Fejes, president of Global Business & chief revenue officer at EPAM said: "Bringing together the First Derivative business and EPAM marks the beginning of a distinctive enterprise that will not only enhance value for our clients but also foster substantial growth opportunities for our teams.
"Leveraging their strong business and technology services heritage, especially in capital markets, allows us to expand our financial services solutions portfolio to our clients, who need to evolve and scale their digital ecosystems, gain greater data insights and enhance operations while minimising risks and maintaining regulatory compliance. And we are enthusiastic about enhancing our partnership with KX, focusing significant resources to strengthen this collaboration."
FD said both KX and First Derivative performed in line with board expectations in the first half ended August 31.
KX delivered an annual contract value of GBP7.4 million, within FD's guidance range of GBP6 million to GBP8 million, and 7.2% higher than GBP6.9 million a year ago.
FD reiterated its expectation that between GBP16 million and GBP18 million in annual contract value will have been added, in the current financial year ending on February 28.
FD shares rose 6.2% to 1,712.59 pence each late on Monday morning in London.
By Tom Budszus, Alliance News slot editor
Comments and questions to [email protected]
Copyright 2024 Alliance News Ltd. All Rights Reserved.