US software giant EPAM Systems will take on two Northern Ireland offices as part of its £230 million deal to buy the consulting business First Derivative from Newry-based FD Technologies.
The move will see around 1,800 First Derivative staff move under the Pennsylvania-based digital technology company, which employs around 65,000 people.
First Derivative has a workforce of around 1,000 people on the island of Ireland, including around 650 in the north.
FD Technologies said under the deal, EPAM Systems will acquire the bigger of its two Newry offices and take on part of its Belfast office complex at The Weaving Works on Ormeau Avenue.
Founded in 1996 as First Derivatives by the late Brian Conlon, the Newry company has grown into one of the north’s most successful tech businesses.
The London-listed FD Technologies commenced a significant restructuring programme a few years ago.
Following a major rebrand in mid-2021, the company underwent a three-way split internally, creating individual software, consulting and data analytical divisions.
Earlier this year, the group split those divisions into three separate businesses: KX, First Derivative and MRP, which was merged with CONTENTgine, a US-based provider of B2B technology buyer insights.
FD Technologies retains a minority 49% share in the business.
The company said the sale of First Derivative, which is expected to close later this year, represents the final stage in the restructuring.
It will leave FD Technologies as a smaller operation focused around its KX business, with a staff of just under 700 people.
The group’s chief executive, Seamus Keating, said the research and development, engineering and customer support divisions of the business will remain on the island of Ireland going forward.
FD will retain the smaller of its two Newry offices and part of the Belfast office complex.
“It’s still important for us to be based in Northern Ireland,” he said.
The CEO said EPAM’s entry into the Irish market opens up the potential for further growth of the First Derivative business.
“EPAM is acquiring the business because they see the opportunity to use FD’s consulting capability and knowledge in capital markets, in areas like the risk and regulatory environment, digital transformation, all of the reporting to the regulator.
“They see that opportunity to grow that, which will drive more work for the EPAM business, which is building complex applications for large enterprise customers.
“Our up-front knowledge driving all of those programmes across EPAM, is the strategic rationale for the EPAM business to this.
“That means there is more opportunity to grow, and to grow faster, because we have those skills in spades in Newry, Belfast and in Dublin,” said Mr Keating.
“If you think about the scale of EPAM’s sales capability globally, being able to frame the FD business into more and more of those customers, it’s all good news for employment everywhere in the business, and very much so in Northern Ireland.”
FD Technologies said it expects to benefit to the tune of £205m once all costs are taken into account.
The company said it will allow it to repay around £20m in group debt.
Meanwhile, in a trading update on Monday, FD Technologies said its KX business delivered £7.4m in contracts within the first half of the year.
First Derivative generated a revenue of around £79m in the same six months ending August 31 2024.