Software firm snapped up by US quoted group

A US group that specialises in selling risk management products to banks, hedge funds and insurers has bought a Yorkshire software business.

RiskMetrics, a former internal division of JP Morgan now listed on the New York Stock Exchange, has acquired Leeds-based Applied4 Technology, which develops investment performance systems for fund managers.

In the six months to June 30 RiskMetrics saw sales rise 31% to £82.7m. Earnings before interest, tax, depreciation or amortisation rose 42% to £26.7m.

In a statement Applied4’s managing director, Mick Brant, said: “Never more has the financial market required robust tools for investment analysis.

“The strength of RiskMetrics’ expertise in the risk field, their market data and their technology, combined with our expertise in the performance field enables us to bring a combined performance and risk offering to the market.”

Applied4 Technology was established in 2006 by Mick Brant and several former colleagues from Mellon Analytical Solutions, formerly Russell/Mellon CAPS.

Mr Brant was the chief executive at Mellon and responsible for the business’s analytical work outside North America.

Stephen Frazer, managing partner at Manchester-based accountants RSM Bentley Jennison, and Paul Raftery, of the law firm Mace and Jones, advised on the deal.

Mr Frazer said: “In times of financial turmoil, it is great to see there are still business opportunities with the US – but the fit has to be right.”

The value of the deal was not disclosed.