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

A-Team Insight Blogs

LakeFront Data is Back in the Same Portfolio as RDF Again, Following Acquisition by First Derivatives

In January last year, New York-based reference data management solution vendor Reference Data Factory (RDF) was demerged from Toronto-based consulting firm LakeFront Data Ventures, but following its acquisition by RDF’s new owner First Derivatives this week, the firms are now back together again. The firms originally demerged to avoid what former president and CEO of RDF (and now president of First Derivatives’ US operations) Dale Richards called “internal and external confusion”, but perhaps this will not be such a problem in the framework of First Derivatives’ overall data management portfolio?

Following its acquisition of RDF for US$10 million in October last year, First Derivatives has therefore now acquired LakeFront Data Ventures and its data community job portal LakeFront Data Jobs. The vendor is hoping that the acquisition will boost its data management capabilities in consulting, advisory and implementation services in the area of enterprise and reference data. By employing more experts on the ground, it hopes to fine tune its approach to the reference data management market, which is a new area for First Derivatives.

One can’t help but think the position of Richards as both former CEO and current board member of LakeFront Data Ventures and president of First Derivatives’ Americas operations may also have had something to do with the acquisition. Since the acquisition of RDF, the firms have been closely working together under his watchful eye as strategic partners; the acquisition is seemingly a “natural extension” of this tie up.

Richards is also no doubt confident that RDF and LakeFront Data Ventures will be much more compatible under the banner of a larger vendor. At the time of the demerger last year, Richards said: “LakeFrontData Consulting is a pure consulting firm and RDF is a pure data management integration tools vendor. The proposed merger caused confusion externally for our clients and we saw that strategically it didn’t make sense to combine the businesses.” This is obviously no longer the case in the eyes of Richards.

LakeFront Data Ventures has been around for four years, having been founded back in 2006 to focus on the reference data implementation space exclusively. Much like RDF, within the larger framework of First Derivatives, it will benefit from greater client reach and geographic footprint. Accordingly, although the team will continue to be based in Toronto, they will also be working at other sites across the First Derivatives group as required.

The total consideration is being satisfied by an unspecified cash payment and the issue of 82,602 new ordinary shares, which will, when issued, rank pari passu in all respects with the existing ordinary shares. Application will be made to the London Stock Exchange and the Irish Stock Exchange for the consideration shares to be admitted to trading on AIM and ESM. It is expected that the Consideration Shares will be admitted to trading on 6 August 2010. Following admission the enlarged issued share capital of the company will be 15,750,328 ordinary shares.

Given the past history of RDF and LakeFront Data, it will be interesting to see how it all fits together under the First Derivatives framework going forward.

Related content

WEBINAR

Upcoming Webinar: Evolution of data management for the buy-side 2021

Date: 27 May 2021 Time: 10:00am ET / 3:00pm London / 4:00pm CET Duration: 50 minutes The buy-side faced a barrage of regulation in 2020 and is now under pressure to make post-Brexit adjustments and complete LIBOR transition by the end of 2021. To ensure compliance and ease the burden of in-house data management, many...

BLOG

DSB Managing Director Emma Kalliomaki Outlines Issues in Progressing the UPI

As the Derivatives Service Bureau’s (DSB’s) first round of industry consultation on fee principles for the Unique Product Identifier (UPI) plays out, we talked to Emma Kalliomaki, managing director of ANNA and the DSB, about some of the issues involved in getting the UPI up, running and ready for its Q3 2022 release. Early conversations...

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

Entity Data Management Handbook – Fourth Edition

Welcome to the fourth edition of A-Team Group’s Entity Data Management Handbook sponsored by entity data specialist Bureau van Dijk, a Moody’s Analytics company. As entity data takes a central role in business strategies dedicated to making the customer experience markedly better, this handbook delves into the detail of everything you need to do to...