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.”
A message from the Editor:
Thank you for reading this story on our website. While I have your attention, I also have an important request to make of you.
With the coronavirus lockdown having a major impact on many of our advertisers - and consequently the revenue we receive - we are more reliant than ever on you taking out a digital subscription.
Subscribe to scotsman.com and enjoy unlimited access to Scottish news and information online and on our app. With a digital subscription, you can read more than 5 articles, see fewer ads, enjoy faster load times, and get access to exclusive newsletters and content. Visit https://www.scotsman.com/subscriptions now to sign up.
Our journalism costs money and we rely on advertising, print and digital revenues to help to support them. By supporting us, we are able to support you in providing trusted, fact-checked content for this website.