First Derivatives buys ticker symbols firm

26th Oct 2009 14:17

Investment banking and derivatives software developer First Derivatives has bought a New Jersey-based software company specialising in reference data management systems.First Derivatives is paying up to $10m (£6m) for Reference Data Factory (RDF) to beef up its range of software products in the field of financial data management.Of the initial consideration of $2.5m, $2m will be satisfied in cash with the rest settled through the issue of 110,000 new First Derivative shares. The issued shares represent around 0.8% of the entire issued share capital of First Derivatives.The deferred consideration, the amount of which will be linked to RDF's new sales in the three years to 23 October 2012, will be paid in cash. RDF's 2008 profit before tax, excluding one-off debts, was $0.5m, while its assets at the time of the sale are said to be not less than $25,000.'RDF has a successful track record of developing enterprise data management software and we believe the expertise of the RDF team will prove highly complementary to our workforce of world-class technology professionals,' said Brian Conlon, chief executive officer of First Derivatives.