Glasgow trader Beeks buys US algorithmic firm

Glasgow-based financial trading firm Beeks Financial Cloud Group said on Thursday it acquired Commercial Network Services (CNS), a US-based online service provider, for up to $1.4 million.

CNS specialises in hosting “low latency” algorithmic trading systems, virtual private networks and streaming media from data centres in London, New York and Los Angeles.

Founded in 2000, CNS provides services to 1,000 retail traders across multiple geographies.

Beeks Financial Cloud is a provider for automated trading in forex, futures, equities, fixed income and cryptocurrency financial products and has 11 data centres globally.

“This transaction is in line with the group’s stated strategy to grow both organically and through tactical and strategic acquisitions,” said Beeks.

“With an established customer base, high levels of recurring revenue and strong service offering, the transaction adds both scale and cost-synergies to Beeks’ retail trader offering.”

Beeks Financial Cloud CEO Gordon McArthur said:At the time of our IPO we stated our belief that the fragmented nature of our industry would provide us with the potential to augment our organic growth with both bolt-on and strategic acquisitions.

“Commercial Network Services is a profitable business whose services reflect those we offer to retail traders.

“The business therefore fits well within our acquisition criteria and we anticipate will be a valuable addition to the group.”