The board of Newry’s FD Technologies has agreed to sell the software analytics company to a fund managed by Boston-based private equity firm TA Associates.
The all-cash deal values the software business at around £570 million.
Under the terms of the acquisition, TA said it will acquire a majority stake in FD Technologies, with existing shareholders “retaining a meaningful minority interest”.
Announcing the decision, FD Technologies chair Donna Troy, said: “We are pleased to have reached an agreement with TA which gives shareholders the opportunity to realise value in cash at an attractive premium.
“The board is unanimous in its belief that this transaction recognises the quality and underlying value of the business and delivers appropriate value to shareholders.”
Founded as First Derivatives in 1996 by the late Brian Conlon, the IT services business grew into one of the north’s most successful home-grown tech stories.
The group underwent major restructuring in recent years, with the business initially split into three.
That paved the way for a £230m deal to sell the group’s consulting arm First Derivative to US software giant EPAM Systems with 1,800 people leaving the company in December 2024.
The group’s MRP division was also merged with CONTENTgine, creating PharosIQ, in which FD Technologies retains a 49% stake.
It has largely left FD Technologies as business focused on its analytics and data-driven KX software.
In a statement to the stock exchange, FD Technologies said its management has been undertaking ongoing cost reduction initiatives, which may involve some job cuts.
Beyond this ongoing programme, the new owners have said they do not intend initiating any material changes to the conditions of employment or the balance of skills and functions of the employees and management of FD Technologies.
“I believe TA is a valuable partner for the company with a shared commitment to enhancing KX’s business and capitalising on the longer-term opportunity in the data and analytics software market,” said FD Technologies CEO Seamus Keating.
“TA has significant experience in supporting high-growth global software businesses and we believe it is a suitable and appropriate partner for our employees, customers and other stakeholders.”
Commenting on the acquisition, Hythem El-Nazer, co-managing partner of TA, said: “With decades of experience investing in and scaling leading enterprise software companies, TA has developed a deep understanding of what it takes to build enduring platforms.
“That perspective gives us a strong appreciation for the unique position KX holds in today’s fast-moving, data and AI-driven environment.
“We believe the company is well positioned to meet the growing demand for real-time insights and help global organizations operate at the speed of data.”