EPAM Systems announced an agreement to buy First Derivative, a Northern Ireland-based managed services and consulting business for the capital markets industry with over 1,800 employees worldwide and major delivery capability in the U.K., Ireland, North America, and APAC.
EPAM will utilize First Derivative’s strong industry experience and brand to deliver a comprehensive set of AI-enabled end-to-end capabilities to clients in banking, capital markets, and other financially regulated businesses across North America, Europe, and APAC. With the acquisition, First Derivative will bring over 100 new clients under the EPAM umbrella, offering unmatched value and setting a new standard for technology services in the financial services industry.
First Derivative specializes in delivering engineering, technical, and business services to help the world’s leading financial institutions, including the top 20 global banks, stay compliant, reduce costs, and enhance efficiency through tech modernization. Through highly customizable, holistic, and easy-to-integrate solutions, clients are equipped to leverage the power of data and AI to enhance decision-making.
The acquisition is subject to customary closing conditions, including the receipt of necessary regulatory clearances, and is expected to close in the fourth quarter of 2024.
Stone Key Partners LLC worked as the exclusive financial advisor and Faegre Drinker worked as the legal advisor to EPAM.
KEY QUOTES:
“We’re pleased to expand our financial services portfolio and diversify our global footprint in key regions with the addition of First Derivative’s deep expertise across capital markets, banking operations and asset servicing. The combination of EPAM’s digital technology and engineering heritage with First Derivative’s business services and packaged implementation software offerings, bolstered by the transformative potential of Generative AI, will establish valuable end-to-end capabilities for our clients. This enables them to evolve and scale their digital ecosystems, gain deeper data insights, enhance operations and drive innovation, all while minimizing risks and maintaining regulatory compliance.”
-Balazs Fejes, President of Global Business and Chief Revenue Officer, EPAM
“EPAM’s commitment to engineering excellence and its transformational capabilities, including GenAI, will strengthen and expand our ability to shape the future for clients, including the world’s largest investment banks. As a top employer for highly skilled engineers, analysts and consultants in capital markets, we are excited to continue our momentum by joining the EPAM team and extending our mission to help organizations accelerate agility and remain competitive in an ever-evolving landscape. Together, we are positioned to be the market leading services provider with a highly differentiated capability, combining strong domain expertise and the best in modern technology. We will offer a full suite of end-to-end business and technology services to the world’s leading investment banks.”
-David Collins, CEO, First Derivative
“For more than 25 years, First Derivative has helped the world’s largest global banks and financial services companies solve their most pressing operational, data and technological challenges. With its combination of domain knowledge and technical expertise, we are proud of First Derivative’s proven track record and long-standing relationships with blue-chip financial institutions and look forward to seeing its continued success.”
-Seamus Keating, CEO, FD Technologies plc
