Prime Analytics provides real-time software to derivatives, futures and commercial energy companies

( ) has taken a step forward in its plan to build a financial risk platform with the acquisition of Prime Analytics, a Chicago-based futures group.

Prime Analytics provides real-time software to derivatives, futures and commercial energy companies.

The maximum total consideration is US$7.5mln, with KRM22 to raise £3.3mln through a placing at 101p to help pay for the acquisition.

Prime Analytics’ ProOpticus product is used by 13 institutional customers to manage risk across their multi-asset class portfolios and support proprietary trading.

At the end of June, Prime Analytics’ annualised revenues were US$2.6mln, while in 2017 it turned over US$2.5mln and posted a loss before tax of US$0.3mln.

Founder John Kelley, a former bond broker, will remain with the company to help integrate the business. KRM22's strategy is to acquire businesses to build a platform that can instantly assess business and financial risks.

Prime Analytics marks the group’s entry into Market Risk, it said, one of the five risk areas to be covered by the platform.

The others are Operational, Technology, Enterprise and Regulatory, where KRM22 made its first acquisition in June through a 60% stake in Irisium.

Keith Todd, KRM22's executive chairman and chief executive, said the acquisition was a further step towards its new generation Global Risk Platform.

“Where our acquisition of Irisium marked our first step into the domain of Regulatory Risk, Prime Analytics marks our entry into the domain of Market Risk.

“Within just five months of our IPO we will have a clear presence in two of the five key risk domains targeted for investment.

“We will also have built - in that same short timeframe and from a standing start - a c. £3m recurring revenue business."

Shares eased 3% to 145p.