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CSC to acquire Fixnetix

First Published 12th August 2015

Computer Sciences Corporation (CSC) announces agreement to acquire Fixnetix.

Hugh Hughes, Fixnetic

Hugh Hughes, Fixnetic

"Fixnetix has built a first-rate reputation within the global financial community. Becoming part of CSC represents the natural next step for Fixnetix."

Falls Church, Va. - CSC a provider of IT services and solutions, has announced it has signed an agreement to acquire Fixnetix, the provider of front-office managed trading solutions in capital markets.

Financial terms were not disclosed but are believed to be worth about $30 a Fixnetix share - a valuation of just over $100 million, according to two people familiar with the talks, the Financial Times reported.

"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.