SunGard Trading and Risk Systems has acquired Reech Capital, a UK-based supplier of hosted risk management, pricing, valuation and operational services, with a strong base in hedge funds.
Financial details have not been disclosed, but it is understood that SunGard is paying an initial consideration of £3.8 million upfront, with performance-related payments over the next three years up to a maximum of £25 million.
Reech will be an operating unit of SunGard Trading and Risk Systems, headed by Christopher Reech as president.
Reech's valuation services and risk management software support all financial asset classes including equity, fixed income, interest rates, FX and credit instruments, as well as their derivatives and highly structured products.
Its RiskHedge package is aimed at hedge funds and fund of funds, and is delivered via an ASP framework. Launched in early 2002 the product is in operation at Global Asset Management, Marble Bar Asset Management, Sector Asset Management and Barings Asset Management.
Other products include the FastVal valuation service that helps market participants respond to new regulations such as IAS39, FRS 17, FAS 133 and Basel II. Reech's eVAR service provides risk calculations and reports via an ASP framework.
Jim Ashton, group chief executive officer, SunGard Trading and Risk Systems, says: "With this acquisition, SunGard is able to offer risk management, pricing and valuation technology to all derivative trading participants in the buy-side (in addition to the sell-side), at all levels of the value chain and of all sizes."
Separately, SunGard's Business Integration unit has appointed Andrew Muir as vice president, marketing communications.
Muir previously held positions at Fidelity, Thomson (now Omgeo) and Mercator Software.