Mixit Inc. , which was founded in 2004, has just signed an acquisition deal with its UK peer Patsystems whereby Patsystems has agreed to buy Mixit for £17.6 million. This will allow Patsystems to launch itself into the US equity and options market.
This news was broken to us by Mixit co-Founder Yusuf Jan who was with the founding team and management in New York for the talkssys with Patsystems.
Mixit has been one of the success stories from Pakistan. Founded on Wall Street by a group of entrepreneurs it is privately held. Since then, it has quickly grown to 100+ employees and is highly recognized as the financial industry’s trusted trading technology provider. The development of the Mixit trading products has been done in Karachi by talented young professionals with the sales and management team based in the US.
Mixit sells technology and trading algorithms to about 250 brokers, investment banks, start-up brokerages, hedge funds and asset managers for trading of equities and futures. As Mixit has a research and development facility in Karachi, the deal will be conditional upon approval by the Competition Commission of Pakistan. The UK group expects to obtain approval by mid-August.
Excerpts from a Press Release issued by Patsystems states:
Patsystems is pleased to announce that it has entered into a conditional agreement to acquire MIXIT Inc., a US based developer and vendor of sell-side Order Management Systems (OMS) and Execution Management Systems (EMS) for equities and options trading (the “Acquisition”).
Benefits of the Acquisition include:
– adds further product and asset classes to the Group, particularly equities;
– increases scale in structurally growing market;
– increases Group percentage of recurring revenue;
– opportunity for revenue synergies from cross selling MIXIT product through Patsystems’ international sales network;
– routing of MIXIT customers’ futures trades to Patsystems’ global network of derivatives market connections; and
– the acquisition is expected to be earnings accretive in first full financial year of ownership.
David Webber, Chief Executive of Patsystems, commented:
“MIXIT has rapidly established itself as a significant vendor in the North American equities OMS market. I am excited by the growth opportunities that the Group will see from repeating MIXIT’s success globally and leveraging the combined strengths of our technology and connectivity offerings.”
Walter Fitzgerald, President & Chief Executive Officer of MIXIT, commented:
“We are extremely excited to be joining Patsystems. The combination of these two complementary, industry-leading technology firms creates a powerful global offering of products and services. Our mutual customers will benefit from the broad range of products, an international presence, and our combined strength. Patsystems’ existing global footprint along with MIXIT’s extensive network provides the infrastructure for our products to be distributed seamlessly worldwide and offer clients access to global multi-asset electronic trading technology.”
This story from the Financial Times provides some details on the acquisition: