RENFREWSHIRE-based fintech firm Beeks Financial Cloud has bought a US trading systems specialist for up to $1.4 million (£1.1m) in support of its global growth plans.
Beeks, which has developed online systems that can be used to speed up trading in financial products, said the acquisition of Commercial Network Services (CNS) would allow the group to increase its customer base while achieving cost savings.
It noted that California-based CNS provides services to around 1,000 retail traders and operates data centres in London, New York and Los Angeles.
The company made around $0.2m profit on revenues of $1m last year.
Beeks’ chief executive, Gordon McArthur said the deal vindicated the firm’s view that the fragmented nature of the industry it worked in should create opportunities to augment its organic growth with bolt-on and strategic acquisitions.
After floating on the AIM market in November 2017 Beeks was left with increased firepower for acquisitions.
The firm has targeted the institutional market while also capitalising on the trend for growing numbers of independent retail investors to use automated trading systems.
Beeks said the acquisition is expected to be earnings enhancing within the first full year.
It has agreed to pay $1.3m in cash on completion, with $0.1m retained subject to satisfactory completion of warranties.
Why are you making commenting on The Herald only available to subscribers?
It should have been a safe space for informed debate, somewhere for readers to discuss issues around the biggest stories of the day, but all too often the below the line comments on most websites have become bogged down by off-topic discussions and abuse.
heraldscotland.com is tackling this problem by allowing only subscribers to comment.
We are doing this to improve the experience for our loyal readers and we believe it will reduce the ability of trolls and troublemakers, who occasionally find their way onto our site, to abuse our journalists and readers. We also hope it will help the comments section fulfil its promise as a part of Scotland's conversation with itself.
We are lucky at The Herald. We are read by an informed, educated readership who can add their knowledge and insights to our stories.
That is invaluable.
We are making the subscriber-only change to support our valued readers, who tell us they don't want the site cluttered up with irrelevant comments, untruths and abuse.
In the past, the journalist’s job was to collect and distribute information to the audience. Technology means that readers can shape a discussion. We look forward to hearing from you on heraldscotland.com
Comments & Moderation
Readers’ comments: You are personally liable for the content of any comments you upload to this website, so please act responsibly. We do not pre-moderate or monitor readers’ comments appearing on our websites, but we do post-moderate in response to complaints we receive or otherwise when a potential problem comes to our attention. You can make a complaint by using the ‘report this post’ link . We may then apply our discretion under the user terms to amend or delete comments.
Post moderation is undertaken full-time 9am-6pm on weekdays, and on a part-time basis outwith those hours.
Read the rules here