Kpler, the commodity data and analytics firm, has agreed to acquire US-based competitor ClipperData for an undisclosed sum.
Set up in 2013, ClipperData specialises in analysis and commentary on global crude, grain and refined product movements.
The move is one of the first major acquisitions in an increasingly crowded market for commodity technology and intelligence, with demand growing for data on cargo flows, trades and inventories worldwide.
“The space has been demanding consolidation," Francois Cazor, chief executive officer of Kpler, told Bloomberg.
“The US will become the biggest market for us in terms of basically any metric: number of clients, data sources, number of users.”
However, the tie-up is likely to lead to a number of redundancies at ClipperData as Kpler only expects to retain about three-quarters of its 45 staff.
Kpler said ClipperData had developed a “unique data offering” for the global commodity markets, with a “long pedigree in petroleum liquids coverage” particularly in the US.
“Its proprietary data is used by hundreds of industry professionals, including leading oil and gas companies, traders, utilities and financial institutions,” said Kpler.
The London-based company said that by integrating the best of the two businesses it aims to provide commodity professionals with “the highest level of market transparency”.
“Through this acquisition, Kpler is fulfilling one of its strategic objectives by consolidating its leadership in the markets it already serves and accelerating its growth,” the company added.
Kpler chief technology officer Jeab Maynier said the two companies have built their reputations around “high quality proprietary data, each with exclusive sources and unique applications of machine learning”.
ClipperData co-founder Sterling Lapinski said he was “proud of what ClipperData has achieved since its creation”.
“Most importantly, I believe that our customers will benefit tremendously from the unmatched services that the combined companies will be able to offer,” he added.
Kpler’s annual recurring revenue should climb to $100m in the “coming years” from almost $40m currently helped by this acquisition that accelerates the company’s growth, according to Cazor.
ClipperData was founded by executives in the commodities and energy data analytics industry, together with an affiliate of private equity firm Nassau Point Investors.
Kpler, which is a privately-owned company, said it employs over 150 staff across nine permanent locations
Houlihan Lokey acted as financial advisor to ClipperData for this transaction.
