Beeks back on acquisition trail

Glasgow-based Beeks Financial Cloud Group has snapped up Velocimetrics, a network monitoring and trade analytics software company based in the UK, in a seven-figure deal.

The cloud computing company, which focuses on financial markets, said the acquisition expanded its product offering into network automation and trading analytics, while increasing its “competitive differentiation from generic cloud hosting and infrastructure providers”.

It is buying the software company for an initial payment of £1.3 million in cash and equity, plus contingent earn-out. At the same time, Beeks has entered into a new debt facility with Royal Bank of Scotland totalling £1.5m to fund the acquisition and provide additional growth capital for the enlarged business.

Meanwhile, in an update to investors, the firm assured that there had been “minimal impact” on current trading from measures implemented due to the Covid-19 virus, with recurring revenues of about 95 per cent. However, it noted that new customer implementations may be delayed.

Chief executive Gordon Mcarthur said: “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.”

Highlighting a strong balance sheet, he added: “We have experienced minimal impact on trading from the measures implemented due to Covid-19, however we continue to monitor the situation closely, with the health and wellbeing of our staff in the UK and globally our priority.”