Beeks Financial Cloud Group, a cloud computing and connectivity provider for financial markets, is pleased to announce it has acquired the entire issued share capital of Velocimetrics Limited, a UK-based network monitoring and trade analytics software company , for a base consideration of £1.3 million in cash and equity, plus contingent earn-out.
Velocimetrics provides real time network monitoring and trade analytics software to a global client list of financial services businesses, including Tier 1 banks, exchanges, brokers, hedge funds and payments providers
Velocimetrics operates with a mix of license and recurring revenue through subscription and maintenance, reporting £1.16m of revenue, loss before tax of £(0.47m) and EBITDA loss of £(0.18m) for the year ended 30 June 2019
The Acquisition expands the Beeks’ product offering into network automation and trading analytics, increasing the Group’s competitive differentiation from generic cloud hosting and infrastructure providers and provides additional cross-sale opportunities across the expanded customer base
The Company has concurrently entered into a new debt facility with The Royal Bank of Scotland plc totalling £1.5 million to fund the Acquisition and provide additional growth capital for the enlarged Group
Minimal impact on current trading from measures implemented due to COVID-19, with continued operational cash generation, increased Annualised Contracted Monthly Recurring Revenue (“ACMRR”) and recurring revenues of c.95%
Continued growth in new business, however new customer implementations may be delayed
Gordon McArthur, CEO of Beeks Financial Cloud commented: “While the Group is focused on organic growth, we continue to assess strategic acquisitions that will complement our business model and expand our offering. 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.”