Financial software company First Derivatives has acquired ActivateClients for €4.75 million.

Dublin-based ActivateClients is a software business specialising in delivering applications and trading systems for the financial markets. In its latest financial year to 31 December 2014, ActivateClients reported revenues of €1 million and€200,000 of profit before tax.

First Derivatives said the acquisition will provide it with complementary software products, particularly HTML5 capabilities.

The initial consideration for the acquisition is €4.75 million, of which €1.5 million is payable in cash and €3.25 million is payable through the issue of new ordinary shares.

Deferred consideration of up to €2 million is payable on the achievement of agreed targets in the year to 29 February 2016.

First Derivatives chief executive officer Brian Conlon said ActivateClients is a low-risk, earnings-enhancing acquisition, which will deliver synergies on a number of levels.

“It provides additional technology capabilities, particularly in HTML5, and its staff possess software development skills that will be useful across a range of projects First Derivatives is working on,” he added.