EPAM Systems, Inc. has announced its agreement to acquire First Derivative, a managed services and consulting firm specializing in the capital markets industry. This strategic move aims to enhance EPAM's capabilities in banking operations, capital markets, and asset servicing, thereby strengthening its global client offerings.
Key Takeaways
Strategic Acquisition: EPAM is set to acquire First Derivative to bolster its financial services portfolio.
Global Reach: The acquisition will expand EPAM's presence in key regions including North America, Europe, and APAC.
Client Base Growth: First Derivative will bring over 100 new clients to EPAM.
AI-Enabled Solutions: The merger will enhance EPAM's ability to deliver AI-driven services to financial institutions.
Overview of EPAM and First Derivative
Founded in 1993, EPAM Systems is a leading digital transformation services and product engineering company, publicly traded on the NYSE. The company specializes in software engineering, cloud services, and AI-enabled transformation solutions.
First Derivative, headquartered in Northern Ireland, has over 1,800 employees and is known for its expertise in delivering engineering, technical, and business services to major financial institutions, including the top 20 global banks.
Benefits of the Acquisition
The acquisition of First Derivative is expected to provide several benefits:
Enhanced Capabilities: EPAM will leverage First Derivative’s industry experience to offer a comprehensive suite of services in capital markets and banking operations.
Increased Client Value: The merger will set a new standard for technology services in the financial sector, providing unmatched value to clients.
AI Integration: The combination of EPAM’s digital technology with First Derivative’s business services will enable clients to harness the power of AI for better decision-making and operational efficiency.
Leadership Insights
Balazs Fejes, President of Global Business and Chief Revenue Officer at EPAM, expressed enthusiasm about the acquisition, stating, "We’re pleased to expand our financial services portfolio and diversify our global footprint. The combination of our digital technology and First Derivative’s expertise will establish valuable end-to-end capabilities for our clients."
David Collins, CEO of First Derivative, echoed this sentiment, emphasizing the potential for growth and innovation. He stated, "EPAM’s commitment to engineering excellence will strengthen our ability to shape the future for clients, including the world’s largest investment banks."
Future Outlook
The acquisition is subject to customary closing conditions and is expected to finalize in the fourth quarter of 2024. This strategic move positions EPAM to become a market leader in providing technology services to the financial sector, combining strong domain expertise with cutting-edge technology solutions.
As EPAM continues to grow its financial services capabilities, it aims to address the evolving needs of its clients, ensuring they remain competitive in a rapidly changing landscape.
For more information about EPAM’s expanding financial services capabilities, visit their official website.
Sources
EPAM Announces Agreement to Acquire First Derivative | EPAM, EPAM.