CSC Announces Agreement to Acquire Fixnetix, a Leading Managed Trading Solutions Provider
News Release -- August 11, 2015
Acquisition Accelerates CSC’s Strategic Growth Plan in Capital Markets and
Offers Clients Winning Combination of Global Capabilities, Outsourcing Expertise and
Mission Critical Trading Systems
FALLS CHURCH, Va., August 11, 2015–CSC (NYSE: CSC), a global leader in next-generation IT services and solutions, today announced it has signed an agreement to acquire Fixnetix, a leading provider of front-office managed trading solutions in capital markets. The proposed acquisition will enable CSC to offer capital market clients an expanded range of as-a-service front office capabilities and will strengthen its ability to address growing client demand for greater efficiency and innovation in trading, market data, hosting, infrastructure, connectivity and risk management.
Capital market firms of all sizes are facing rapid change amid more stringent customer, regulatory and competitive requirements. With sophisticated systems that are often cost- prohibitive to run in-house, firms are looking to outsource the management and operation of trading systems’ infrastructure to become more agile, responsive to customers and cost efficient. Increasingly, they are turning to as-a-service utility models that leverage next-generation IT solutions to support global, ultra-low latency trading environments that are reliable, secure, have minimal risk and enable at-trade compliance.
Fixnetix streamlines front-office management and trading systems operations, market information systems and related technology infrastructure. With headquarters in London, Fixnetix also has operations in New York, Boston, Chicago and Tokyo.
“Fixnetix will be a key component to the implementation of our infrastructure strategy and will advance CSC as a leader in providing managed services to capital markets firms throughout the world,” said Steve Hilton, executive vice president and general manager, Global Infrastructure Services, CSC. “Our mission is to provide next-generation IT platforms and IT utility services that reduce cost and modernize industry services for our clients.
“This is a transformative market that is ready to embrace an as-a-service utility model, and CSC is uniquely positioned to make this happen with the addition of Fixnetix. While time to market will continue to be a competitive differentiator, security and availability remain vital; clients increasingly seek lower cost service delivery and usage-based pricing. With this acquisition our clients will gain access to an expanded range of as-a-service, front-office capabilities as we build on our commitment to provide reliable, cost-efficient technology infrastructure.”
Hugh Hughes, CEO and chairman of Fixnetix, said that “Aligning with CSC expands the global reach and scale of Fixnetix to better serve our global clients. For the last decade, Fixnetix has built a first-rate reputation within the global financial community. Becoming part of CSC represents the natural next step for Fixnetix. We will gain the resources that we need to better respond to market demand, effectively address bigger deployments, and build on our established success. CSC’s proven at-scale reputation to deliver across all industries will fundamentally bring greater credibility and presence to Fixnetix. We look forward to bringing CSC’s scale capabilities, application modernization, reliability and simplicity to our clients.”
“The new capital markets reality requires holistic service partners that can more effectively assist firms throughout the transaction life cycle and across asset class and geography,” says Larry Tabb, Founder and CEO of TABB Group a financial markets research and advisory firm. “The front-end strengths of Fixnetix combined with the delivery capabilities and balance sheet of CSC helps fill this need.”
The closing of the acquisition is subject to customary conditions. Financial terms of the agreement were not disclosed. Closing of the transaction is expected during the third quarter of 2015. The largest shareholder in Fixnetix is Delta Partners, a venture capital firm that invested in the company at start-up.
Computer Sciences Corporation (CSC) is a global leader of next generation information technology (IT) services and solutions. The Company's mission is to enable superior returns on our clients’ technology investments through best-in-class industry solutions, domain expertise and global scale. CSC has approximately 70,000 employees and reported revenue of $11.7 billion for the 12 months ended July 3, 2015. For more information, visit the company's website at www.csc.com.
Fixnetix is an award winning company providing outsourced managed services across multiple asset classes to leading global banks, hedge funds and proprietary trading groups seeking trading, market data, hosting, infrastructure, connectivity and risk management solutions. The company is in over 40 co-location and proximity hosting centers across the world offering access to over 90 markets. Fixnetix is one of the first firms to commercialize FPGA (Field Programmable Gate Array) technology for execution purposes with the iX-eCute® trading appliance. Fixnetix has submitted and has been granted, several patents for their iX-eCute product suite by the United States Patent and Trademark Office For more information, visit www.fixnetix.com.
All statements in this press release and in all future press releases that do not directly and exclusively relate to historical facts constitute “forward-looking statements.” These statements represent the Company’s intentions, plans, expectations and beliefs, and are subject to risks, uncertainties and other factors, many of which are outside the Company’s control. These factors could cause actual results to differ materially from such forward-looking statements. For a written description of these factors, see the section titled “Risk Factors” in CSC’s Form 10-K for the fiscal year ended April 3, 2015 and any updating information in subsequent SEC filings. The Company disclaims any intention or obligation to update these forward-looking statements whether as a result of subsequent event or otherwise, except as required by law.