Fintech start-up KRM22 led by former Ffastfill chairman Keith Todd plans at least three more acquisitions this year after it announced on Tuesday its first deal, to buy a surveillance platform from Cinnober.
Speaking on the fringes of the FIA IDX conference in London on Tuesday Todd said the firm, which only listed on AIM in late April, has a healthy pipeline of acquisition targets as it looks to build a holistic risk management service for mid-sized banks and hedge funds.
Todd, the executive chairman of KRM22, said: “We are looking at plenty of acquisition targets. We had two at the time of our listing, one of these is done now and the second is on track in the short term. I’d expect a further two or three before the end of 2018. These will be integrated into out SaaS (Software-as-a-Service) platform.”
Todd’s comment came after KRM22 announced on Tuesday it had agreed with Cinnober to buy 60% of the Swedish fintech giant’s market surveillance unit Irisium for £2.3 million.
The chief executive of Irisium is Alastair Goodwin who was latterly the head of business development at Boat, another Cinnober firm, and, before that, with Goldman Sachs, Barclays Capital and Morgan Stanley.
The firms said in a joint statement on Tuesday London-based Irisium provides trade surveillance, has 22 employees and 13 customers.
Todd continued: “We are moving very fast because the market opportunity is there. Since we listed in April, we have been approached by many firms who agree with us that as a small company they are struggling to get into the larger institutions.”
Todd and his team wants to build for small and medium-sized banks, and hedge funds a low cost, holistic risk management service.
“We have asked many mid-sized companies how many risk systems they have and the answer can be as high as 30 though they often don’t know. There is a massive amount of cost and complexity whereas we are able to facilitate access to these products at a lower cost for the customer” Todd said.
KRM22 is looking at further acquisitions to plug into its SaaS-based risk cockpit and an App-store that will enable companies to access KRM22 and third party solutions.
Todd said: “As well as buying a number of companies, we are also opening an App store that offers a single log-in to access multiple third parties. I would expect by September we will have one or two partners for our app store.”
KRM22 achieved its London Stock Exchange AIM-listing on April 30, raising £10.3 million from a series of investors including Cinnober, Hargreave Hale, Octopus Investments, Livingbridge, Rathbone and Artemis Investment Management.