The leading knowledge platform for the financial technology industry
The leading knowledge platform for the financial technology industry

A-Team Insight Blogs

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

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.

Related content

WEBINAR

Upcoming Webinar: Managing the transaction reporting landscape post Brexit: MiFID II, SFTR, EMIR

Date: 16 March 2021 Time: 10:00am ET / 3:00pm London / 4:00pm CET Duration: 50 minutes The transaction reporting landscape has, for many financial institutions, expanded considerably in size since the end of the UK’s Brexit transition period on 31 December 2020 and the resulting need for double reporting of some transactions to both EU...

BLOG

DANIE Consortium Uses Game Changing Privacy Enhancing Technology to Improve Client Reference Data Quality

The DANIE consortium set up to help financial institutions improve the quality of their client reference data by benchmarking data with peers without revealing data sources and with encryption, is calling for banks to confirm places in its 2021 community by 18th December 2020. You can find out more and sign up by contacting community@danie.tech....

EVENT

Data Management Summit London

The Data Management Summit Virtual explores how financial institutions are shifting from defensive to offensive data management strategies, to improve operational efficiency and revenue enhancing opportunities. We’ll be putting the business lens on data and deep diving into the data management capabilities needed to deliver on business outcomes.

GUIDE

RegTech Suppliers Guide 2019

Welcome to our brand new RegTech Suppliers Guide. This unique guide provides detailed data profiles on close to 100 suppliers in the RegTech world, offering you an unrivalled selection of solutions for your most pressing financial regulatory challenges. The aim of the A-Team’s RegTech Suppliers Guide is to steer you through this complex marketplace, offering...