A SCOTTISH cloud computing firm focused on financial services has made a second acquisition in the US, with the deal taking it into futures trading for the first time.
Beeks Financial Cloud, which has made its name in the cloud-based foreign exchange sector, has acquired Chicago-based VDIware for a “seven-figure” sum.
The deal is the second struck by Beeks in just over a year, following a subsidiary’s acquisition if New York-based Gallant VPS in May 2014. Gallant ran an algorithm for foreign exchange trading.
Beeks said the VDIware acquisition allows the company to give institutional investors access to futures exchanges in Chicago, Frankfurt, New York, Tokyo and London.
Chief executive and co-founder Gordon McArthur described the VDIware acquisition as a “very strategic deal”.
Mr McArthur, who began his career as a futures trader, on indices such as the S&P and the Dow 30, said: “Our history has been in foreign exchange – that’s where we are known as a brand. This takes us into a different area of finance – futures – that’s oil, commodities, gold, [and] silver.
“It’s really a strategic move by us to diversify into a different asset class. It’s a big deal.”
He added: “That’s where I first cur my teeth as a trader. It’s an area I know and loved, and wanted to get more involved in.”
Mr McArthur said Beeks had been actively seeking a move into futures trading in Chicago, and had considered achieving this by either setting up its own division or acquiring.
After meeting VDIware founders Pete Johnson and Patrick Rams, he said the decision to do a deal with that company had been straightforward.
Mr McArthur said: “When we met the guys from VDIware it became the obvious the combination of both made a stronger player globally. It was an easy decision and we are all very excited about it.”
Both Mr Johnson and Mr Rams will remain with the company, Mr McArthur said, as VDIware’s five-strong team in Chicago moves across to Beeks in its entirety.
The personnel will effectively run Beeks’ American business from the existing office, which is located at the heart of Chicago’s financial services district.
Mr McArthur said: “It wasn’t a move to get rid of people or reduce costs – it was to get some good folk in and keep on expanding.”
The acquisition will contribute to Beeks achieving its target to increase turnover to £10 million by 2017. The company, which has its head office in Linwood, is projected to turn over £5m this year.
Mr McArthur noted that the company is growing strongly organically but remains in the hunt for more acquisitions, revealing that discussions have already taken place over potential deals.
So far the company has self-funded acquisitions but Mr McArthur said it would consider raising external finance to fund bigger deals. That could ultimately see it float on the Alternative Investment Market (AIM).
Mr McArthur said: “We’ve come to the stage where we will look for some external help to finance some bigger acquisitions. We’re still growing very quickly organically and still very hungry more acquisitions.
“There are other asset classes to go into like equities and shares which we just don’t do at the moment.”
He added: “We wouldn’t rule out AIM flotation. We’re in the financial markets – that’s where we live – so it makes sense to go to the capital markets.
“If we do need a chunk of financing, why wouldn’t we do it?”
Although the work Beeks engages in primarily takes place in the global financial centres of London, New York, Tokyo, and Chicago, Mr McArthur said there are advantages to being based in Scotland.
“There is actually a great deal of talent in Scotland. We have got a great stream of talent coming out of the universities. A lot of people go down to London in their early years, get a lot of great skills in finance, and want to come home for family reasons. There is a great skill base here.”
He added that the price of office space and flight connections to cities such as New York and Chicago were other advantages.
The company has a global workforce of 29, 10 of which are in Scotland, with others located in the US, Austria, Indonesia and Japan, where it opened an office in Tokyo last year.
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