FD Technologies PLC (AIM:FDP) shares were marked 7% higher this Monday in response to a proposed divestment of its First Derivative business to EPAM systems for £230 million.
The sale will allow FDTech to focus on KX, its AI-driven analytics software, and execute its growth strategy.
Proceeds from the disposal will also be used to repay £20 million in net debt, and excess cash will be returned to shareholders, said FD Tech.
First Derivative provides capital markets consulting services and employs approximately 1,670 people.
The proposed spin-off, which is subject to shareholder approval, was announced in FD Tech’s latest trading update.
Seamus Keating, chief executive of FDTech, said: "This divestment is positive for all stakeholders, benefitting our shareholders and the customers and employees of KX and the First Derivative Business.
“For shareholders, it enables the group to focus on KX, and provides the resources to deliver on our exciting growth plans while also enabling us to return excess cash.”