KRM22 buys Chicago-based Prime Analytics for up to $7.5m

AIM-listed technology and software investment company KRM22 has announced the acquisition of Prime Analytics, a Chicago-based risk management technology company, for up to $7.5m.

The company also announced a placing of 3.28 million new ordinary shares at 101p each to raise around £3.32m to fund the upfront cash consideration of the deal.

The price comprises an initial consideration of $4.5m and a maximum additional deferred consideration of $3m, which is payable in two tranches of $1.5m and subject to earn-out conditions based on the financial performance of Prime Analytics for the years ended 31 December 2019 and 31 December 2020.

KRM22 said the acquisition is consistent with its strategy and investing policy and its objective to invest in technology and software businesses with a focus on risk management in the capital markets.

Prime Analytics provides real-time software solutions to professional derivatives traders, risk managers and the broader futures industry. Its customers include established proprietary traders, four of the world's largest futures commission merchants and commercial energy companies.

Keith Todd, executive chairman and chief executive officer of KRM22, said: "This acquisition is a further, strategic step toward the development of the new generation Global Risk Platform we are focused on developing. The addition of Prime Analytics to our existing operations will bring new software, new talent and a wealth of new tier one customers to the group.

"Where our acquisition of Irisium marked our first step into the domain of regulatory risk, Prime Analytics marks our entry into the domain of market risk. Within just five months of our IPO we will have a clear presence in two of the five key risk domains targeted for investment."