London-headquartered FFastFill operates in the global derivatives market, and is using the trade and assets of US-based WTD to complete its back-office product, Eclipse. It plans to launch the product in the US following the acquisition.
The terms of the purchase will see AIM-listed FFastFill make an initial £4.5 million payment, with a deferred consideration of up to £3.2 million payable based on performance targets.;
The consulting arm of WTD is to be spun-out into a new company, FFastFill Consulting, while the product and operation business will remain within the newly merged group.
Keith Todd, executive chairman at FFastFill, says the deal is an important step for the business that will drive growth.
He adds: ‘It will enable us to build on our significant existing strengths in SaaS and enable us to target that strength more forcefully at opportunities in the US marketplace.’
According to a statement, the deal is to be financed initially through the allotment of shares to WTD Consulting. The deferred consideration will be financed using cash and shares in equal proportion. Upon completion, all WTD staff will be offered new employment with FFastFill.
Hamish Purdey, chief executive at FFastFill, comments: ‘WTD has an outstanding reputation in the industry and, by bringing both our teams and technologies together, we will provide a strengthened platform for us to continue our growth.
‘I am confident that WTD will be a great asset to FFastFill in then next phase in our company’s development.’
In August, FFastFill acquired Spread Intelligence for £1.5 million as part of its front office service growth plans. That deal marked the first time that FFastFill had entered the M&A market since its 2007 purchase of Exchange Systems Technology for £5.5 million.
