Transaction Network Services (TNS), provider of mission-critical infrastructure, connectivity, market data and analytic services for the Financial Markets community, has announced the acquisition of the managed hosting and colocation business of BornTec, a real-time data analytics provider. The deal further expands TNS’s global connectivity footprint and builds on previous strategic acquisitions, including R2G and NetExpress.
BornTec, known for its CrossCheck trading data analytics platform, aims to sharpen its focus on at-trade and post-trade operational resilience, data intelligence, and automation. Commented on the deal, Derek Haworth, CEO of BornTec, said that the divestiture would bring the company to the forefront of these areas.
Prior to the acquisition, TNS and BornTec already had a longstanding relationship, Rick Gilbody, TNS’s Head of North America Sales, Financial Markets, tells TradingTech Insight. “BornTec had been a client of TNS for some time for hosting and managed connectivity and infrastructure,” he says. “This deal came about organically when they were looking to divest that part of their business and focus purely on their CrossCheck software. Since TNS has positioned itself as an agnostic network provider in the space, it was a natural fit for us to work together, considering that we had all the existing infrastructure and colocation in place that their clients needed. So there were synergies right out of the gate.”
TNS plans to use the acquisition to enhance mission-critical connectivity for its diverse customer base, which includes exchanges, trading venues, buy- and sell-side institutions, market data vendors, software developers, and cloud service providers worldwide. In 2019, the company augmented its financial services footprint by deploying the first globally accessible Layer 1 ultra-low latency trading infrastructure. The acquisition demonstrates TNS’ commitment to continue scaling its capabilities and global presence, says Gilbody
“We were the first to market to be able to provide a shared Layer 1 solution for clients,” he says. “Since that point, we’ve been adding colocation sites, specifically in APAC, where in the last couple of years, we’ve added JPX, SGX and HKX. When we looked at our respective client bases, it was clear that BornTec have a diverse client base consisting of market makers, hedge funds and prop shops in Chicago and Europe, especially in the futures markets. So the level of crossover between our client bases wasn’t huge. That meant it was a great fit, because we have the services that those clients need.”
The acquisition officially closed on 21 March 2023. During the transition, BornTec’s managed hosting customers will receive uninterrupted service and will have the opportunity to upgrade to TNS’ Layer 1 connectivity with ultra-low 5-85 nanosecond latency. This will provide unparalleled trading access within the TNS global exchange community, says Gilbody.
“It’s important to make sure that we go through an integration effort that works for BornTec’s clients,” he says. “A big step in that direction is giving them the opportunity to access our Layer 1 infrastructure to access markets like CME and Eurex to improve their latency profile, but making the transition as smooth as possible so that they are not disrupted. And so far, things have been really positive and successful on that front.”
TNS currently connects over 2,800 financial community endpoints through a global, 125-strong point-of-presence footprint. The company offers a range of connectivity, colocation, cloud, market data, and VPN solutions within its Infrastructure-as-a-Service (IaaS) portfolio. TNS’ solutions are monitored 24/7/365 by Network Operations Centers in the US, UK, Australia, and Malaysia.
Going forward, TNS intends to place a heavy emphasis on cloud infrastructure for financial markets, says Gilbert. “We’re developing our own cloud platform, including the recent launch of our Dedicated Server product, which is geared towards trading firms, market data vendors, hedge funds, and banks who need a private cloud solution to consume mark data and trade. Because they won’t have to physically deploy switches and hardware, it gets them up and running faster. For firms running different trading strategies, all the time, this will give them a faster way to validate those strategies with a zero footprint infrastructure.”
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