FD Technologies to Distribute £120m to Shareholders Following Business Sale

FD Technologies, a technology company located in Newry, plans to distribute £120 million to its shareholders following the divestment of a substantial segment of its operations. Irenic Capital, based in the US, holds the largest share, possessing a 20% stake. The family of the late Brian Conlon, the company’s founder, maintains an approximate 13% stake. Over the past year, FD Technologies has undergone extensive restructuring and will now operate exclusively as a software business. In October, the company announced the sale of its consulting division, First Derivative, to EPAM Systems, a US firm. This transaction is scheduled for completion next month, expected to yield a net total of £205 million. From this amount, £120 million is earmarked for shareholder distribution, £32 million for debt repayment, and the remaining funds will be reinvested into the business, which is now centered on its software product, KX. Seamus Keating, the chief executive of FD Technologies, stated: ‘We have made significant strategic and operational progress in the first half of the year, with the divestment of First Derivative and strong execution in KX.” He further added that “KX will be a pure-play, high-growth software business; fully funded and well-positioned to capitalise on the significant and growing global market opportunity.” Mr. Keating informed the BBC that the £54 million retained within the business is intended to achieve profitability within the next two years. He also mentioned that these funds could be utilized to expedite growth when suitable opportunities arise. He concluded by stating that a robust balance sheet serves as “an important confidence signal” for both customers and investors. Copyright 2024 BBC. All rights reserved. The BBC holds no responsibility for the content of external sites. Details on their approach to external linking are available.