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First Derivatives purchase Spanish-based company

Tuesday, 12 December 2017

NEWRY'S First Derivatives have purchased Spanish based company Telconomics for €2.5m.

The acquisition forms part of First Derivatives' continuing strategy to target the telco market with its Kx technology, where it sees significant opportunities.

Based in Madrid, Telconomics was founded in 2009 to provide analytics consulting for telco network operators.

The company has also recently developed a number of software products, including INTEF, a platform to perform critical activities such as network development strategy, network planning and network optimisation.

According to a statement from First Derivatives it is intended that INTEF will be subsumed into the Kx Telco Solutions suite, incorporating the kdb+ in-memory database, which enables real-time data ingestion and provides time series capabilities for operations support, fraud detection, clickstream analysis and proximity marketing.

The founders of Telconomics - Alfonso Campo, Javier Lazaro and Juan Blazquez - will remain in their current roles.

"Telco is one of our key target verticals and we believe that this acquisition will help turbo charge our growth in this area," said Brian Conlon, CEO of Kx (part of First Derivatives).

"The products, domain expertise and customer contacts provided by Telconomics, supplemented by our data science, machine learning and engineering resources, provide the opportunity for significant returns."

Last month First Derivatives has announced that its Kx technology has been selected by Red Bull Racing to analyse sensor data from its Formula 1 vehicles.

It is intended that Red Bull Racing will use Kx technology for a range of purposes including wind tunnel experiments and the analysis of in-race data to enable real-time decisions during Grand Prix races.

Kx technology is a high-performance data base, which is able to capture, integrate and analyse vast quantities of data to provide real-time actionable insights.

Profit before tax at Newry-based First Derivatives were €7.2m in the six months to August 31, while revenue at the company was €99.7m during the six-month period, an increase of 21% year-on-year.

The initial consideration for the acquisition of Telconomics is €0.9m, of which €0.4m is payable in cash and €0.5m is payable through the issue of 12,199 new ordinary shares in First Derivatives.

A deferred consideration of up to €1.6m is payable on the achievement of certain performance targets over the three year period post acquisition.

In the year to December 31, 2016, Telconomics generated revenue of €0.8m and earnings of €0.3m.

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