Beeks Financial Cloud Group Plc announced this Wednesday that it has acquired the entire issued share capital of Velocimetrics Limited for a base consideration of £1.3 million in cash and equity, plus contingent earn-out.
Velocimetrics is a UK-based network monitoring and . It provides its software to financial services businesses, such as Tier 1 banks, exchanges, brokers, hedge funds and payments providers.
The acquisition expands the product offering of Beeks into network automation and trading analytics. In order to fund the acquisition, Beeks has entered into a new debt facility with The Royal Bank of Scotland plc totalling £1.5 million. The debt facility will also provide extra growth capital for the now larger Group.
For the year ended on the 30th of June, 2019, Velocimetrics reported revenue of £1.16 million and loss before tax of £0.47 million and EBITDA loss of £0.18 million. The company operates with a mix of license and recurring revenue through subscription and maintenance, the statement through the (LSE) said.
Beeks: COVID-19 has minimal impact on trading
According to for financial markets, the current will have minimal impact on current trading. However, it may delay new customer implementations.
“The acquisition of Velocimetrics accelerates our product roadmap, providing us with the ability to offer our clients network monitoring and trade analytics, increasing our competitive differentiation while minimising anticipated product development spend for this functionality. We believe the Velocimetrics offering will have wide applicability across our institutional customer base and look forward to welcoming the Velocimetrics team into the Group and delivering on the opportunity ahead.
“We have experienced minimal impact on trading from the measures implemented due to the COVID-19 pandemic, however we continue to monitor the situation closely, with the health and wellbeing of our staff in the UK and globally our priority. The Group benefits from approximately 95% recurring revenues, a strong balance sheet, resilient business model and growing new business pipeline, therefore while we are unlikely to be entirely unimpacted, we believe we are in a strong position to withstand the current challenges.”
Be First to Comment