Beeks said the deal was in line with its growth strategy and will improve its retail trader offering.
According to reports, Beeks Financial Cloud Group acquired Commercial Network Services (CNS). The cloud computing and connectivity provider stated that it paid $1.4 million for CNS’ assets.
Established in 2000, CNS hosts low latency algorithmic trading systems, virtual private networks and streaming media from data centres in London, New York and Los Angeles.
Commercial Network Services claims to serve approximately 1,000 retail traders from across the globe.
As per financial reports by the company, it made $1 million in revenue last year, with a profit of $170,000.
Beeks said that its purchase of the company is in line with its strategy of scaling through organic growth and acquisitions.
The cloud computing services provider, Beeks added that CNS will help it to grow, and advance pricing for, its retail trading business.
Gordon McArthur, Beeks’ Chief Executive Officer said, “At the time of our IPO we stated our belief that the fragmented nature of our industry would provide us with the potential to augment our organic growth with both bolt-on and strategic acquisitions.”
He further added, “[CNS] is a profitable business whose services reflect those we offer to retail traders. The business therefore fits well within our acquisition criteria and we anticipate will be a valuable addition to the Group.”
Beeks will complete its acquisition with a $1.3 million cash payment. According to a statement issued by the firm, the remaining $100,000 will be held as retention subject to satisfactory completion of warranties.
Beeks will use the cash funds that it already holds to finance the costs of the deal. The cloud computing company said that it expects the deal to enhance earnings after its first complete year of ownership.