Acquisition in line with plans
Beeks acquires US-based online firm in $1.4m deal
Beeks Financial Cloud Group, the Renfrewshire-based cloud computing and connectivity provider for financial markets, has acquired the assets of Commercial Network Services, a US-based online service provider, in a deal worth up to $1.4 million.
CNS specialises in hosting low latency algorithmic trading systems, virtual private networks and streaming media from data centres in London, New York and Los Angeles.
Founded in 2000, CNS provides services to approximately 1,000 retail traders across multiple geographies.
CNS has annualised recurring revenue of approximately $1m and delivered a profit before tax of $0.17m in the year to 31 December 2018.
The transaction brings additional customers and datacentre locations to Aim-quoted Beeks’ retail offering and is expected to deliver cost synergies. It is expected to be earnings enhancing within the first full year of Beeks’ ownership.
This acquisition is in line with the group’s stated strategy to grow both organically and through tactical and strategic acquisitions. With an established customer base, high levels of recurring revenue and strong service offering, the deal adds both scale and cost-synergies to Beeks’ retail trader offering.
Gordon McArthur, CEO of Beeks Financial Cloud commented: “At the time of our IPO we stated our belief that the fragmented nature of our industry would provide us with the potential to augment our organic growth with both bolt-on and strategic acquisitions.
“Commercial Network Services is a profitable business whose services reflect those we offer to retail traders. The business therefore fits well within our acquisition criteria and we anticipate will be a valuable addition to the Group.”