Mill Valley, California-based online trading platform BondDesk Group LLC has acquired MPA Technologies, a San Francisco-based software development firm.
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Brad Wendt, president and chief operating officer of BondDesk Group, noted that the company decided to purchase MPA to add additional analytical tools to its platform. Its clients had requested technology that would give them advanced analytical instruments necessary to help customers make informed decisions, he added.
To that end, the company considered either developing or buying the technology. MPA was already successfully deployed in various offices across the country so BondDesk opted for the acquisition. "Why reinvent the wheel?" Wendt asked.
"As we continue to innovate in advance of the needs of our clients, we look for ways to enhance our current products through strategic alliances and acquisitions. By integrating MPA's analytical tools with the power of the BondDesk platform, we continue our strategy of providing best-of-breed fixed-income solutions," he added.
Ron Crampton, president of MPA Technologies, noted in a statement that the company's "extensive experience researching and developing financial decision support solutions is a perfect fit with BondDesk and offers exciting prospects for BondDesk and MPA clients." Crampton will become president of Desktop Analytics, a new BondDesk entity that will run as an independent business.
The MPA system is used at various investment banks, regional broker dealers and buy-side firms. It is used by registered representatives, liaison traders, and fixed-income strategists.
The system offers a fixed-income portfolio management system with comprehensive charting and reporting capabilities for institutional and retail clients. Analysis includes swap, tax efficiency, total return and cash flow analysis for tax-exempt and taxable securities.
The technology will enable users to easily answer a "what if" question, such as a query regarding the change in a bond's value over several years if rates fluctuate. It will also enable users to examine a client's portfolio and, with the information gained, determine if the customer would be better served if the portfolio's assets were shifted.
BondDesk's equity partners include ABN AMRO, A.G. Edwards & Sons Inc., Goldman, Sachs & Co., and UBS PaineWebber Inc. The terms of the acquisition were not disclosed.
