About a-team Marketing Services
The knowledge platform for the financial technology industry
The knowledge platform for the financial technology industry

A-Team Insight Blogs

First Derivatives Plans Significant Investment in Kx Systems following Acquisition of Majority Shareholding

Subscribe to our newsletter

First Derivatives’ acquisition of a majority shareholding in Kx Systems gives the company ownership of the kdb+ technology stack, access to over 100 Kx customers and a business unit that is expected to be earnings enhancing in the current financial year.

First Derivatives, a Newry-based provider of software and consulting services to the financial services industry, has worked with Kx for many years. It took a 20.1% stake in the company in 2009, before acquiring a further 46.47% to achieve ownership of 65.2% last week. Consideration for the additional holding was £36 million in a mix of cash and shares. First Derivatives also agreed to acquire the remaining shareholding of Kx from its founders at their request and at the same valuation within the next seven years.

Kx will operate as a separate entity within First Derivatives’ group structure and will continue to be led by co-founders Arthur Whitney and Janet Lustgarten. Lustgarten, who is CEO at Kx, is also expected to join the board of First Derivatives. All Kx employees remain with the company and First Derivatives says there will be no change for Kx’s 100-plus customers, which include nine out of the top 10 global investments banks and a number of exchanges, regulators and hedge funds.

Before acquiring a majority stake in Kx, First Derivatives offered the Kdb+ time series database to customers under an OEM agreement. It also used, and will continue to use, Kx technology to power its Delta trading, risk and data platform. Adding the Kx technology to its stack, First Derivatives says it will address big data issues in the financial services market by offering customers the ability to build big, fast data solutions using kdb+ and its consultancy services, or buy applications based on its Delta trading, risk and data platform. The company also intends to push the Kx technology into other vertical markets.

Brian Conlon, CEO art First Derivatives, says: “Having worked closely with the team at Kx for more than a decade, First Derivatives understands the power and value of kdb+. Together we look forward to exploiting its capabilities to their full potential as we further penetrate the financial services sector and build on the foothold that has been established in other vertical sectors. We intend to make significant investments in Kx to allow the founders and their team to scale the company while staying true to its heritage.”

While First Derivatives has global reach through operations in London, New York, Stockholm, Singapore, Hong Kong, Sydney, Toronto, Philadelphia and Dublin, the acquisition of a majority stake in Kx is expected to call for a strategy for China, where Kx has a handful of direct customers and OEM agreements.

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: Potential and pitfalls of large language models and generative AI apps

Large language models (LLMs) and Generative AI applications are a hot topic in financial services, with vendors offering solutions, financial institutions adopting the technologies, and sceptics questioning their outcomes. That said, they are here to stay, and it may be that early adopters of Generative AI apps could gain not only operational benefits, but also...

BLOG

Danish Pension Company Velliv Implements CuriumEDM for ESG Data Management

Velliv, a Danish pension and insurance company, has implemented Curium Data Systems’ enterprise data management solution, CuriumEDM, to manage the processing of its ESG data and ensure it can accommodate expanding regulatory and commercial requirements around ESG datasets. Curium’s initial target at Velliv is to address the ingestion, aggregation, mastering and quality control of ESG...

EVENT

Data Management Summit London

Now in its 14th year, the Data Management Summit (DMS) in London brings together the European capital markets enterprise data management community, to explore how data strategy is evolving to drive business outcomes and speed to market in changing times.

GUIDE

Regulation and Risk as Data Management Drivers

A-Team Group recently held a webinar on the topic of Regulation and Risk as Data Management Drivers. Fill in the form to get immediate access to the accompanying Special Report. Alongside death and taxes, perhaps the only other certainty in life is that regulation of the financial markets will increase in future years. How do...