Beeks Financial Cloud has taken over London-based data analytics business Velocimetrics for £.3 million.
The Glasgow-based fintech said the acquisition would offer new services to its clients, further setting it apart from pure cloud data storage competitors.
Velocimetrics, which was founded in 2009, provides real time network monitoring and trade analytics software to clients worldwide including the Australian Securities Exchange, trading platforms City Index and X2M as well as banks and hedge funds.
Beeks 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.
"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."
For the year to 30 June 2019, Velocimetrics reported revenue of £1.16 million pre-tax, a loss of £470,000 and EBITDA loss of £180,000. Beeks has funded the acquisition with a new £1.5 million lending facility from Royal Bank of Scotland, which will also provide growth capital.
Beeks, which operates an infrastructure-as-a-service network of 15 data centres across the world, connects financial institutions with exchanges, trading venues and cloud service centres. Last year it reported revenue of £7.35 million and profit before tax of £1.32 million.
It said the current volatility related to Covid-19 was providing a "positive trading environment" for many of its customers and that the outbreak itself had little adversely effect on operations. Revenue is in line with expectations, it said, and the new business pipeline continues to grow.
