GFT Technologies AG (GFT) today announced the acquisition of G2 Systemsâ consulting services division, a specialist in the provision of high-class IT consulting services for Alternative Investment companies. GFT has thus extended its portfolio with the addition of services for GenevaÂ®, a leading portfolio management platform. âInvestment banking is one of the largest growth markets in the financial sector today. With this acquisition, we will be able to meet the demand of financial institutions for comprehensive services. Our Delivery Model with near-shore and off-shore delivery centres in Brazil and Spain will allow us to deliver those services to customers in a flexible and cost-efficient way,â states GFTâs COO Marika Lulay. âAt the same time, the acquisition enables us to expand our client base in the United States and establish the basis for further growth in the important US market.â
GFT and G2 Systems have been working together since 2010 when they established the global âSmart Sourcingâ of GenevaÂ® â a new comprehensive, cost-efficient service for GenevaÂ® implementation and support services. The partnership allowed both companies to exploit the synergies between G2 Systemsâ extensive on-site expertise and GFTâs global delivery capabilities and profound knowledge of the financial sector. G2 Systems has also already been working with some of GFTâs London-based clients. Christopher Ortiz, GFT UKâs Managing Director commented âEurope and the UK are clear growth targets for GFT following the acquisition of G2 Systems and weâre delighted to bring together the two teamsâ.
âWe are excited about taking our alliance to the next level and becoming part of the GFT Group, a services provider that is very well positioned in the international market. The integration of G2 Systemsâ consulting services into GFTâs Delivery Model will enable us to offer our outstanding services at a highly attractive price â and that is exactly what financial institutions are calling for,â says Ruban Selvakumar, COO of G2 Systems.
Founded in 2005, G2 Systems is committed to the delivery of dynamic processing systems. G2 consultants with extensive financial as well as technological expertise specialise in services connected with the software solution Advent Geneva, a portfolio management platform for Alternative Investment firms, and TaxGopher, a deployed software solution developed specifically for the analysis of wash sales. G2 earned the status of Adventâs âPremier Consulting Partnerâ for Geneva and âAlliance Partnerâ for TaxGopherÂ®. G2 Systemsâ services range from consulting services for investment management platforms to the development, implementation and support of tax compliance, regulatory and data warehouse software solutions. The GFT acquisition will only include the service assets of G2 Systems, whose clients include numerous US-based investment banks. G2 Systems was advised in this transaction by Innovation Advisors, a technology-focused investment bank.
âWith its highly specialised niche competencies, G2 Systems fits perfectly to us. There is great potential in the growing investment banking market and we aim to benefit from this development. The acquisition will provide us with a fast-track option to building a substantial presence in the United States by leveraging our Brazilian and Spanish delivery organisations. The USA is a growth market for GFT. Last year, we doubled revenues there. We now want to continue along our growth path,â says GFT COO Marika Lulay.
By acquiring G2 Systemsâ consulting services with a revenue target of approximately USD 4 million, GFT expects to reach total annualised revenue of around USD 12 million for 2011 in the United States and will employ more than 20 people in New York and Boston. The two companies have agreed not to disclose the purchase price.