StatPro buys US-based Investor Analytics

AIM-listed StatPro has acquired US-headquartered, cloud-based risk analytics company Investor Analytics LLC for a cash consideration of $10m (£7m).

The company, which provides portfolio analysis and asset pricing services for the global asset management industry, said there is an additional contingent payment of up to $6m, payable after one year and dependent on securing a number of new contract wins.

StatPro said the deal, expected to be earnings-enhancing in 2016 on a pro-forma basis following completion of the integration programme, will significantly increase its US presence, enhancing geographical reach.

The group expects to benefit form cost synergies of approximately $1m per annum for data feeds, administrative services and other costs.

In addition, it said the transaction will raise its cloud-based annual recurring revenue to 35% of total revenue, from 27%.

StatPro is financing the deal by increasing its debt facility with the technology finance division of Wells Fargo Capital Finance to around £24.5m, £17m of which is committed.

Chief executive Justin Wheatley said: “This earnings enhancing acquisition brings an excellent complementary cloud-based risk service which strengthens and broadens our product and service offering globally.

"IA also brings a highly professional team, new clients and provides greater market penetration into the important US market.”

At 1030 GMT, StatPro shares were up 2.9% to 72p.