Today, CubeLogic announced that it had acquired Berlin-based energy and commodity surveillance provider – FERDEC. I spoke with CubeLogic CEO, Lee Campbell, this evening to get an overview of the acquisition.
CubeLogic, a provider of business intelligence (BI) enabled risk management solutions, had been working more informally with FERDEC over the last year or so when proposing to potential customers a broader solution including trade surveillance, he told me. “It seemed to be a good fit for both parties, and we felt it was better to do a full acquisition in going forward with the partnership.” CubeLogic intends to place additional staff in the FERDEC office in the near future to bolster its European presence on the ground.
Offering a variety of tools in and around risk and regulatory management via its RiskCubed product suite, adding FERDECs robust matching engine for trade surveillance adds breadth and depth in a sought out area of complementary functionality. As the press announcement stated,
“the ferdecTS® engine can detect potential market abuse patterns arising from the manipulation of the physical characteristics of transactions, as well as purely financial aspects which other surveillance tools are typically limited to. The reason for moving from partnership to the acquisition was due to the unique synergies and complimentary services of the two businesses.”
According to Mr. Campbell, the two companies are working on a number of sales opportunities together already and had developed a good understanding of the technical fit. Both vendors expect upselling opportunities across the 40+ combined customer base while FERDEC clients will perhaps gain some reassurance in having a larger and stable vendor supporting the FERDEC software going forward. The combined entity will employ around 75 people on the back of some significant growth last year, Mr. Campbell said. An additional benefit for CubeLogic is the acquisition of a number of highly experienced energy consultants at FERDEC. According to the announcement,
CubeLogic has expanded its global footprint and now has representation in Europe, USA, Bangalore and Asia Pacific, employing over 75 domain expert professionals. The new additions to the team bring an unparalleled depth of specialist experience in the transaction surveillance area alongside deep industry knowledge. On demand access to this wealth of expertise means that CubeLogic can continue to expand their innovative suite of solutions to help serve the energy, commodity and financial services sectors. The FERDEC Berlin office will enrich CubeLogic’s European footprint and provide further support to their clients in those regions.
Christian Endter, FERDEC Managing Director comments, “CubeLogic is rapidly becoming a force to be reckoned with in the technology provider community and and having worked very closely with Lee and his team, I know they have the passion and experience needed to take the FERDEC business to the next level it deserves.”
Certainly, this acquisition seems to us to hold benefits for both parties allowing FERDEC to reach a broader market faster with its surveillance tools while bolstering its capabilities and enhancing its client’s confidence in its future. CubeLogic acquires one of the more specific energy and commodity trade surveillance tools at a time when that requirement seems set for good growth.