Small Talk: Patsystems extends its reach with deal to buy US-based Mixit

The market for exchange traded derivatives – which are different from the over-the-counter variety traded directly between two parties – has seen strong growth in recent times. Earlier this year, a report from the World Federation of Exchanges, an industry association whose membership features 52 exchanges around the world, showed that, despite the impact of the global financial crisis, trading in derivatives on regulated exchanges surged by 25 per cent in 2010.

The underlying figures were astonishing. More than 22 billion derivatives contracts were traded, according to the report, comprising of 11.3bn futures and 11.1bn options, compared with a total of 17.9bn in the preceding year.

All this bodes well for Patsystems, the AIM-listed trading technology specialist.

The company makes software to enable the trading of exchange traded derivatives, and to manage risk ahead of, and after, the trade. And, thanks to the growing market in these instruments, financial firms are expected to invest heavily in the kind of software Patsystems makes.

Eyeing that demand, the company has been busy bulking up its business, with the announcement last week of a deal to acquire US-based Mixit Inc. The target specialises in sell-side order and execution management systems for trading equities and options, so the deal will bring both new products and asset classes into the Patsystems fold.

In addition to scale, it also brings opportunities to distribute Mixit products through the Patsystems sales network. Beyond that, there's the latter's network of connections between different markets – including the London Metal Exchange and the Tokyo Stock Exchange – which can be used to route Mixit customers' derivatives.

Initially, Patsystems will pay £12.6m. But that could rise to £17.6m, depending on Mixit's performance in the 12 months to March next year.

The City reaction has been good, with Numis highlighting the growth opportunities presented by the deal. "Mixit's customers are mainly smaller brokers at present (although it is moving into larger banks) with around $50,000 revenue per customer and a diversified customer base," the broker said, pointing out that the largest customer accounts for only 4 per cent of the firm's revenues, and that 90 per cent of revenues come from recurring licenses.

Moreover, it only serves the North American market. "Patsystems plans to expand this to major Asian exchanges over the next six months, and thereafter leverage the opportunity to cross-sell equities [and] options capabilities to its growing Asian customer base," Numis said.

Atlas aims to speed up medical tests

Testing for certain infectious diseases can take days, as samples are sent from the GP to the lab, where they are processed before being sent back. The back and forth takes time, and makes the testing more costly than it would be if it could be done on site by the doctor.

Bristol-based heathcare group Atlas Genetics is seeking to change that with what it calls its "ultra rapid, point of care tests" for a range of infectious conditions.

Although it can be applied more widely, the initial focus is on sexually transmitted diseases, and in particular on chlamydia and gonorrhoea. And in addition to offering accuracy, the company says that, instead of having to wait days for a result, its system can diagnose the conditions within 20 to 30 minutes.

The patient goes to the doctor, who takes a sample. The sample is put in a disposable cartridge, which is inserted into the test machine. Within half an hour, the patient has a result, doing away with the logistics, and the cost, of ferrying the sample to the hospital lab.

The platform, known as Velox, is due to be launched in Europe at the end of next year, "followed by rollout in the US, pending regulatory approvals," the company, which is led by chief executive Dr John Clarkson, said.

Last week, Atlas received a vote of confidence in the shape of a £16.9m investment from a syndicate of new and existing investors, which featured some big names from the medical field. The syndicate, led by Novartis Venture Funds and London-listed Consort Medical, includes Life Sciences Partners, one of the world's biggest biotech investment firms, BB Biotech Ventures and the Johnson & Johnson Development Corporation.

"Dr Clarkson and his team have accomplished quite an astonishing technical feat," Florent Gros, managing director of Novartis Venture Funds, said. "We have searched hard and long for novel molecular diagnostic technologies and the Velox platform is a very ingenious solution to the key issues that have hindered the development of ultra-rapid and highly sensitive point-of-care molecular diagnostic instrumentation... We are very excited by the company's prospects."

Origo behind new copper-gold group

Now for some more news from Origo Partners, the AIM-listed, China-focused private equity group that this column has featured before.

Last week, Toronto-listed Brazilian Diamonds completed its acquisition of Origo's stake in Kincora, which owns the Bronze Fox copper/gold project in Mongolia.

The deal gives Origo around 35 per cent of Brazilian Diamonds, which will be renamed Kincora Copper to create a new listed copper-gold company.

Alongside, Kincora raised an additional C$13.6m (£8.8m), including C$500,000 from Origo and C$1m from its affiliates.

The deal should introduce transparency, according to the analysts at Liberum Capital.

"Origo will benefit from having a mark-to-market value for its investment, increasing the transparency of valuations, although this may also increase volatility in the holding," they explained, reiterating its "buy" recommendation on Origo's stock.

Looking ahead, the analysts also raised the prospect of another listed miner emerging from the Origo portfolio.

"Origo's Mongolian resources projects are well placed to create significant upside over the short to medium term, and we would highlight Origo's interest in Gobi Coal & Energy as the next possible IPO in Origo's Mongolian mining portfolio," they said.

The slice of Prince Charles and Princess Diana's wedding cake and the original box from 29 July 1981
newsPiece of Charles and Diana's wedding cake sold at auction in US
James Argent from Towie is missing, police say
newsTV star had been reported missing
Arts and Entertainment
Gregg Wallace in Summer's Supermarket Secrets
tv All of this year's 15 contestants have now been named
Arts and Entertainment
Inside the gallery at Frederick Bremer School in Walthamstow
tvSimon Usborne goes behind the scenes to watch the latest series
Life and Style
A picture taken on January 12, 2011 shows sex shops at the Paris district of Pigalle.
newsThe industry's trade body issued the moratorium on Friday
Winchester College Football (universally known as Winkies) is designed to make athletic skill all but irrelevant
Life...arcane public school games explained
Arts and Entertainment
Could we see Iain back in the Bake Off tent next week?
tv Contestant teased Newsnight viewers on potential reappearance
Life and Style
Silvia says of her famous creation: 'I never stopped wearing it. Because I like to wear things when they are off the radar'
fashionThe fashion house celebrated fifteen years of the punchy pouch with a weighty tome
i100(and it's got nothing to do with the Great British Bake Off)
Angelina Jolie with her father Jon Voight
peopleAsked whether he was upset not to be invited, he responded by saying he was busy with the Emmy Awards
Bill Kerr has died aged 92
peopleBill Kerr appeared in Hancock’s Half Hour and later worked alongside Spike Milligan and Peter Sellers
news It's not just the world that's a mess at the moment...
footballPremiership preview: All the talking points ahead of this weekend's matches
Keira Knightley poses topless for a special September The Photographer's issue of Interview Magazine, out now
ebooksAn evocation of the conflict through the eyes of those who lived through it
The Ukip leader has consistently refused to be drawn on where he would mount an attempt to secure a parliamentary seat
voicesNigel Farage: Those who predicted we would lose momentum heading into the 2015 election are going to have to think again
Arts and Entertainment
Cara Delevingne made her acting debut in Anna Karenina in 2012
film Cara Delevingne 'in talks' to star in Zoolander sequel
Mario Balotelli pictured in his Liverpool shirt for the first time
Life and Style
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Financial Technical Consultant (C++, C#, Finance, MSc, PhD)

£50000 per annum: Harrington Starr: Financial Technical Consultant (C++, C#, F...

Data Scientist (SQL,Data mining, data modelling, PHD, AI)

£50000 - £80000 per annum + benefits+bonus+package: Harrington Starr: Data Sci...

SAS Business Analyst - Credit Risk - Retail Banking

£450 - £500 per day: Orgtel: SAS Business Analyst, London, Banking, Credit Ris...

Project Manager - Pensions

£32000 - £38000 Per Annum Bonus, Life Insurance + Other Benefits: Clearwater P...

Day In a Page

Ukraine crisis: The phoney war is over as Russian troops and armour pour across the border

The phoney war is over

Russian troops and armour pour into Ukraine
Potatoes could be off the menu as crop pests threaten UK

Potatoes could be off the menu as crop pests threaten UK

The world’s entire food system is under attack - and Britain is most at risk, according to a new study
Gangnam smile: why the Chinese are flocking to South Korea to buy a new face

Gangnam smile: why the Chinese are flocking to South Korea to buy a new face

Seoul's plastic surgery industry is booming thanks to the popularity of the K-Pop look
From Mozart to Orson Welles: Creative geniuses who peaked too soon

Creative geniuses who peaked too soon

After the death of Sandy Wilson, 90, who wrote his only hit musical in his twenties, John Walsh wonders what it's like to peak too soon and go on to live a life more ordinary
Caught in the crossfire of a cyber Cold War

Caught in the crossfire of a cyber Cold War

Fears are mounting that Vladimir Putin has instructed hackers to target banks like JP Morgan
Salomé's feminine wiles have inspired writers, painters and musicians for 2,000 years

Salomé: A head for seduction

Salomé's feminine wiles have inspired writers, painters and musicians for 2,000 years. Now audiences can meet the Biblical femme fatale in two new stage and screen projects
From Bram Stoker to Stanley Kubrick, the British Library's latest exhibition celebrates all things Gothic

British Library celebrates all things Gothic

Forthcoming exhibition Terror and Wonder: The Gothic Imagination will be the UK's largest ever celebration of Gothic literature
The Hard Rock Café's owners are embroiled in a bitter legal dispute - but is the restaurant chain worth fighting for?

Is the Hard Rock Café worth fighting for?

The restaurant chain's owners are currently embroiled in a bitter legal dispute
Caribbean cuisine is becoming increasingly popular in the UK ... and there's more to it than jerk chicken at carnival

In search of Caribbean soul food

Caribbean cuisine is becoming increasingly popular in the UK ... and there's more to it than jerk chicken at carnival
11 best face powders

11 best face powders

Sweep away shiny skin with our pick of the best pressed and loose powder bases
England vs Norway: Roy Hodgson's hands tied by exploding top flight

Roy Hodgson's hands tied by exploding top flight

Lack of Englishmen at leading Premier League clubs leaves manager hamstrung
Angel Di Maria and Cristiano Ronaldo: A tale of two Manchester United No 7s

Di Maria and Ronaldo: A tale of two Manchester United No 7s

They both inherited the iconic shirt at Old Trafford, but the £59.7m new boy is joining a club in a very different state
Israel-Gaza conflict: No victory for Israel despite weeks of death and devastation

Robert Fisk: No victory for Israel despite weeks of devastation

Palestinians have won: they are still in Gaza, and Hamas is still there
Mary Beard writes character reference for Twitter troll who called her a 'slut'

Unlikely friends: Mary Beard and the troll who called her a ‘filthy old slut’

The Cambridge University classicist even wrote the student a character reference
America’s new apartheid: Prosperous white districts are choosing to break away from black cities and go it alone

America’s new apartheid

Prosperous white districts are choosing to break away from black cities and go it alone