First Derivative: Newry tech business sold to US firm

Newry-based FD Technologies has agreed to sell its consulting business, First Derivative, to a US business for £230m.

First Derivative employs about 1,800 people across its global operations.

They will be moving to EPAM Systems, a Pennsylvania-based digital technology firm with around 65,000 employees.

The deal is the last stage in a major restructuring of FD Technologies.

EPAM said the deal will add about 100 new clients to its business.

“We’re pleased to expand our financial services portfolio and diversify our global footprint in key regions with the addition of First Derivative’s deep expertise across capital markets, banking operations and asset servicing,” said Balazs Fejes, President of EPAM’s global business.

David Collins, the chief executive of First Derivative said: “We are excited to continue our momentum by joining the EPAM team.

“Together, we are positioned to be the market leading services provider with a highly differentiated capability, combining strong domain expertise and the best in modern technology.”

The deal is expected to close before the end of the year and after expenses will return about £205m to FD Technologies.

The money will used to pay off £20m of debt, support the KX business plan and return some money to shareholders.

The amount which will be paid to shareholders is still to be confirmed.

FD Technologies, formerly known as First Derivatives, is one of Northern Ireland’s biggest homegrown technology businesses.

In March it said the business would be restructured to focus on its KX software division.

At that time it announced a deal to sell MRP, its marketing technology division.

Founded by the late Brian Conlon in 1996, the company currently employs about 2,500 people worldwide and is one of Northern Ireland’s major graduate recruiters.