FFastFill plc

Software for the global derivatives market

Status Realised
Period Dec 09 – Apr 13
Headquarters London, UK

During the course of Kestrel’s Investment:

Market Cap Increased

3.1x to £106m

Adjusted EBITDA Up

2x to £6.3m

SaaS Deployment

100%

Sources: Takeover price LSE, company financials FY13

Company
FFastFill was a provider of SaaS derivative trading software to financial institutions worldwide.

Investment rationale

  • Strong recurring revenue growth potential
  • Efficient SaaS operations driving high margins and cash conversion
  • Globally diverse customer base with significant non-Sterling revenues

Realisation
We accepted a 20p per share, £106m recommended cash offer for FFastFill in April 2013 from a company backed by ION Trading. The purchase price represented a 32% premium to the prevailing share price and represented an historic revenue multiple of 6.2, and an historic EBITDA multiple of 37.8x.

Kestrel’s involvement, actions and impact
We bought an initial stake in 2009 and gradually built our position through on-market purchases and primary share issues. Shortly after investing, we helped defend the the company against an opportunistic offer that under-valued the company and instead backed management to grow organically and via acquisition.

Our relationship was based on openness and integrity – I’m a big fan of Kestrel and a real advocate of their approach.

Keith Todd, former Chairman, FFastFill plc