Technology and software investment company KRM22 announced the acquisition of Prime Analytics, a Chicago-based risk management technology company, for a maximum total consideration of $7.5 million. KRM22 also announced a placing of 3+mn new ordinary shares, in which Canaccord Genuity has subscribed for 600k+, to raise some £3.32 million total to fund the upfront cash consideration of the acquisition.
Prime Analytics provides real-time software solutions to professional derivatives traders, risk managers and the broader futures industry. Its product is used by 13 institutional customers to manage the risk of their multi-asset class portfolios and support professional proprietary traders to actively trade derivative options.
The move marks the investment firm’s entry into market risk, one of five risk domains targeted along with regulatory, operational, technology and enterprise. KRM22 already has a presence in regulatory risk through its June 2018 investment in Irisium, a market surveillance company and subsidiary of Cinnober. Nasdaq is set to acquire Cinnober for $190mn.