FFastFill, the AIM-listed Software as a Service (SaaS) provider to derivatives markets, has entered into a conditional asset purchase agreement for the acquisition of WTD Consulting for a maximum of $12m (£7.6m).
FFastFill believes WTD, a technology consulting and software solutions business, is a "highly complementary" acquisition, which would strengthen its global position.
Under the terms of the agreement, FFastFill will pay an initial £4.5m on completion, followed by a deferred payment of up to £3.2m based on the company's performance. The first payment will be paid through the allotment of more than 43m shares, while the deferred payment, if paid, will be half cash and half ordinary shares.
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In a statement the firm said: "The addition of the business and assets of WTD positions the company well to benefit from the significant regulatory changes taking place in the United States that are steadily driving the clearing of traditional Over the Counter methods toward a central counterparty clearing model."
WTD has a customer entity base of 30 including a number of global banks.
For the year ended 30 June, WTD generated revenue of $8m and operating profdit of $1m. The company said it expects the acquisition to be earnings enhancing in the first twelve months.
The share price fell 1.23% to 10p by 11:11Am.
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