EPAM Systems Completes Strategic Acquisition of First Derivative, Boosting AI Capabilities in Financial Services

EPAM Systems Acquires First Derivative

EPAM Systems, Inc. (NYSE: EPAM), a leading digital transformation services and product engineering company, has successfully completed its acquisition of First Derivative, a Northern Ireland-based managed services and consulting business specializing in the capital markets industry 1

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. This strategic move brings together EPAM's digital, AI, cloud, and engineering capabilities with First Derivative's expertise in financial services.

Expanding Global Reach and Capabilities

First Derivative, with over 1,800 employees worldwide, has a significant presence in Northern Ireland, North America, and APAC 2

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. The acquisition allows EPAM to leverage First Derivative's strong industry experience and brand to deliver a comprehensive set of AI-enabled capabilities to clients in banking, capital markets, and other financially regulated businesses across these regions 1

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Enhancing AI and Data-Driven Solutions

First Derivative boasts one of the largest, fully dedicated capital markets consulting teams globally. The company deploys a range of technology capabilities to assist clients in meeting their technology challenges, including:

1. Application development and modernization
2. Real-time data platforms
3. Robotic process automation
4. Machine learning and artificial intelligence 1

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This acquisition aligns with EPAM's focus on AI and data-driven solutions, as evidenced by their existing offerings such as AI LLM orchestration, testing, and engineering solutions like EPAM DIAL, EPAM EliteA™, and EPAM AI/RUN™ 2

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Leadership Perspectives

Balazs Fejes, President of Global Business and Chief Revenue Officer at EPAM, expressed excitement about welcoming First Derivative's talented team and client base. He highlighted the opportunity to apply First Derivative's specializations in regulated industries and implementations of specialized commercial software solutions to EPAM's wider customer base 1

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David Collins, CEO of First Derivative, emphasized the alignment of technological innovation visions between the two companies. He stated that the partnership would offer strengthened financial services to clients, empowering operational insights, driving innovation, and more effectively managing risk in an increasingly data-driven landscape 1

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Acquisition Details and Advisors

The acquisition successfully closed after meeting all customary closing conditions, including the receipt of necessary regulatory clearances. Stone Key Partners LLC served as the exclusive financial advisor, while Faegre Drinker acted as the legal advisor to EPAM throughout the acquisition process 1

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EPAM's Market Position and Future Outlook

EPAM Systems, founded in 1993, has established itself as a leading global provider of digital engineering, cloud, and AI-enabled transformation services. The company was added to the S&P 500 and Forbes Global 2000 in 2021 and has been recognized by Glassdoor and Newsweek as a Top 100 Best Workplace 2

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As the company continues to expand its capabilities and global reach, it remains focused on addressing clients' transformation challenges and speeding up time to market for innovations and digital investments. The acquisition of First Derivative is expected to further strengthen EPAM's position in the financial services sector and enhance its AI-driven solutions offerings.