— Beeks Financial Cloud buys VDIware for undisclosed seven-figure sum
— Company plans double turnover to £10m by 2017, as rapid expansion continues
Glasgow, Scotland, Thursday 17 September: For Immediate Use
A Scottish firm – which last year bought a New York rival to become the world’s largest low latency cloud provider for algorithmic forex trading – is on the US acquisition trail again.
Beeks Financial Cloud – which helps institutions trade foreign exchange securely and quickly through the cloud – has bought Chicago-based *futures specialist VDIware for an undisclosed seven-figure sum, it was announced today (Thursday 17 September).
The acquisition was self-funded by Beeks Financial Cloud, without borrowing.
The move follows last year’s purchase of New York-based Gallant VPS by Beeks Financial Cloud subsidiary BeeksFX VPS, and the parent company’s set-up of a Japanese arm with staff and an office, in Tokyo.
Berkshire Capital – a New York-based investment bank specialising in mergers and acquisitions in the financial services sector – advised on the VDIware deal.
Berkshire and its partners at Shift Forex – a boutique, FX-focused consulting firm – work together to bring specialised services and domain expertise to investment banking transactions in the foreign exchange industry.
And for Glasgow-based CEO Gordon McArthur, the acquisition fits perfectly with the company’s long-term growth strategy.
He said: “Our aim is to become a cross-asset-class financial markets hosting specialist for the foreign exchange (forex), futures, and equities markets.
“We have an unrivalled reputation in the forex markets and the acquisition of the highly respected VDIware brings our world-beating hosting services to institutional clients in the futures town, Chicago.”
VDIware is based in Chicago’s financial district, the nerve centre of the worldwide futures markets. It has direct connectivity to futures exchanges the CME (Chicago Mercantile Exchange) and ICE (Intercontinental Exchange).
With the acquisition of VDIware, Beeks Financial Cloud now offers institutional investors direct access to futures exchanges in Chicago, Frankfurt, New York, Tokyo and London. It provides ultra-reliable and high speed hosting of servers and market data.
VDIware founders Pete Johnson and Patrick Rams have moved over to Beeks Financial Cloud. They will continue to be based at the company’s Chicago office and hold the positions of VP Americas and Group Global Sales Director, respectively.
Johnson commented: “We’re looking forward to bringing Beeks’ financial cloud services to our futures clients. For us, it always seemed the perfect fit.”
Set up four years ago by Scots Gordon McArthur and Tony Doleman, Beeks Financial Cloud (which incorporates BeeksFX VPS) has grown from a £60,000 turnover in year one to a projected £5m this year, a target it has reached 18 months ahead of schedule.
And the company plans to more than double revenue to £10m by the end of 2017.
CEO Gordon McArthur explained: “We plan to grow organically over the next two years. But we are always on the look-out for the self-funded acquisition of a hosting provider to the equities markets.
“And we haven’t ruled out an AIM flotation if and when the time is right. Watch this space.”