US-based digital transformation services provider EPAM Systems has agreed to acquire First Derivative for an enterprise value of £230m to expand its global financial services practice.
First Derivative is a capital markets consulting services company, with over 1,800 employees worldwide and operations in the UK, Ireland, North America, and APAC.
The proposed transaction is expected to be completed in the fourth quarter of this year, subject to shareholder approval, and other conditions.
Through the proposed acquisition, First Derivative would bring more than 100 new clients under the EPAM umbrella.
EPAM will leverage First Derivative’s experience and brand to deliver AI-powered capabilities to clients in banking, capital markets and other financially regulated businesses.
EPAM chief revenue officer and global business president Balazs Fejes said: “We’re pleased to expand our financial services portfolio and diversify our global footprint in key regions.
“The combination of EPAM’s digital technology and engineering heritage with First Derivative’s business services and packaged implementation software offerings, bolstered by the transformative potential of Generative AI, will establish valuable end-to-end capabilities for our clients.
“This enables them to evolve and scale their digital ecosystems, gain deeper data insights, enhance operations and drive innovation, all while minimizing risks and maintaining regulatory compliance.”
First Derivative is a division of FD Technologies, which is listed on the Alternative Investment Market (AIM) of the London Stock Exchange.
The company delivers engineering, technical and business services to top global financial institutions, to help them stay compliant, reduce costs, and enhance efficiency.
Also, it will provide highly customisable, holistic, and easy-to-integrate solutions to help clients use the power of data and AI to enhance decision-making.
First Derivative CEO David Collins said: “We are excited to continue our momentum by joining the EPAM team and extending our mission to help organisations accelerate agility and remain competitive in an ever-evolving landscape.
“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.”
FD Technologies CEO Seamus Keating said: “For more than 25 years, First Derivative has helped the world’s largest global banks and financial services companies solve their most pressing operational, data and technological challenges.
“With its combination of domain knowledge and technical expertise, we are proud of First Derivative’s proven track record and long-standing relationships with blue-chip financial institutions and look forward to seeing its continued success.”
