Electronic trading technology business Patsystems has bought out US-based Mixit in a deal which could rise to £17.57 million.

Electronic trading technology business Patsystems has bought out US-based Mixit in a deal which could rise to £17.57 million.

AIM-listed Patsystems has purchased the software developer, which supplies order management (OMS) and execution management systems (EMS) as part of its plan to expand in a ‘structurally growing market’.

Mixit provides technology which supports institutional and broker-to-broker-based trading across equities and options to banks, brokers, hedge funds and asset managers.

An initial consideration of £12.57 million is payable on completion, with total costs rising to a possible £17.57 million based on the financial performance of Mixit for the year ending 31 March 2012. The deal is to be completed using a combination of cash and issue of shares.

Mixit has established itself as a significant vendor in the North American equities OMS market, says chief executive of Patsystems, David Webber.

Walter Fitzgerald, president and chief executive officer of Mixit, comments: ‘The combination of these two complementary […] technology firms creates a powerful offering of products and services.

‘Patsystems’ existing global footprint along with Mixit’s network provides the infrastructure for our products to be distributed seamlessly worldwide.’

Mixit had reported revenues of $9.2 million (£5.7 million) and pre-tax profit of $600,000 for the year to date 31 March 2011.

According to a statement the acquisition allows for the routing of Mixit customers’ future trades to Patsystems’ global network of derivatives market connections. The existing management team will remain with Mixit as part of the enlarged business.

London-based Patsystems has offices in the US, Singapore, Japan, Australia and Hong Kong.