Cinnober offloads Irisium subsidiary majority stake in £2.5 million deal

Technology firm Cinnober has sold 60% of its subsidiary, Irisium, to KRM22, a technology and software investment company, with a particular focus on risk management in capital markets. London-based Irisium is a real-time market surveillance solution which offers market operators detection of market abuse.

KRM22 is purchasing 60% of Irisium’s equity and debt from Cinnober for £2.571 million ($3.46 million) in cash; Cinnober will retain a 40% ownership stake in Irisium. There is further potential consideration for Cinnober should Irisium achieve “certain financial milestones” in 2019. Cinnober has the potential to receive £600,000 ($800,000) in the event that Irisium achieves £2.0 million ($2.69 million) of annualised recurring revenue as of 30 June 2019.

“Today’s announcement is consistent with our ambition when we acquired Irisium to find a strategic partner to accelerate growth and consolidate the surveillance market,” said Veronica Augustsson, CEO of Cinnober Group. “We have strong confidence in KRM22 following a multi-year relationship with its founders and senior leadership team who have extensive experience and knowledge in building SaaS (Software as a Service) solutions.”

In May 2017, Cinnober acquired the business and assets of Ancoa Software, a UK-based market surveillance specialist company, and rebranded the business to Irisium. Irisium currently has 22 employees, 13 customers and a recurring revenue base of approximately £1.0 million as well as a strong pipeline of prospects. As part of the contract, Cinnober will continue to leverage its sales strength and sell the Irisium offering to its core exchange market, KRM22 will sell to derivatives trading firms and hedge funds and Irisium will sell directly to all other capital markets sectors.

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