IT services company Linedata Services SA will acquire software development company Beauchamp Financial Technology Ltd for an initial 11m pounds ($19m) in cash.
Under the terms of the deal, Neuilly-sur-Seine, France-based Linedata will pay an additional 14m pounds ($24.2m), conditional upon Beauchamp achieving specific growth and profitability targets over the next two years.
London, UK-based Beauchamp develops trading and portfolio management applications for alternative investment managers. The company employs approximately 120 staff in the UK, New York, and Hong Kong, and is forecast to record revenue of approximately 11m pounds ($19m) in the fiscal year to March 2006.
Linedata provides application development, systems integration, and processing services to clients in the financial services sector. In the year to December 2004, Linedata reported net income of 7.2m euros ($8.5m) on sales of 113.1m euros ($133.1m), up 12.8% from the previous year.
In September, Linedata acquired US-based back-office software provider Global Investment Systems. The deal followed Linedata’s failure earlier in the year to purchase Ontario, Canada-based Financial Models Company Inc. The company made an offer of approximately CDN 113m ($96.9m) but was outbid by investment and financial management software vendor SS&C Technologies Inc.
Following the announcement of the Beauchamp deal, Linedata’s shares rose 3% to 20 euros in trading on the Paris stock exchange.