‘We help our members grow through a variety of networking opportunities.’

First Derivatives to Buy Out Kx Systems Shareholders

Congratulations to our member, First Derivatives plc who announced yesterday that it has reached an agreement with the minority shareholders of Kx Systems, a subsidiary of the group, regarding the acquisition by FD of their entire remaining shareholding.

Upon completion on the transaction which is expected to take place on or before 29th June 2019, FD will own 100% of the issued share capital of Kx Systems.

FD has agreed to acquire the remaining 600,022 Kx Systems shares that it doesn’t already own from the minority shareholders, namely Arthur Whitney and Janet Lustgarten, who are co-founders and current directors of Kx Systems and their associated persons. The aggregate consideration is $53.8m in cash, to be financed from FD’s available facilities. The terms of the transaction are in line with those agreed between FD and the minority shareholders in October 2014 and include a payment of $12.0m in lieu of anticipated dividends to the minority shareholders for the period up to 31st October 2021.

Brian Conlon, Founder and CEO of FD commented:

“Since we acquired a controlling interest in Kx Systems in October 2014, we have invested heavily across our business to target multiple new industries. The agreement to acquire 100% of Kx Systems provides certainty for the Group and its shareholders as we seek to realise the considerable potential we see for further growth.”