Electronic Data Systems Corp. announced this week that it has acquired a New York-based consulting firm headed by Michael T. Reddy, a noted technology expert in the securities industry.
The acquisition of FCI Inc., a management and information technology services firm, is aimed at strengthening EDS' offerings to Wall Street firms, company officials said Tuesday.
Mr. Reddy will continue as chairman and chief executive officer of FCI and will report to EDS financial industry group executive Coley Clark. More than 100 FCI employees will join EDS as part of the deal. Financial terms were not disclosed. In addition, Mr. Reddy will be responsible for leading EDS' activities with securities firms worldwide, officials said.
"Having a person of Mike Reddy's stature to direct our business initiatives in the securities industry will raise our contributions in this market to a new level," Mr. Clark said.
Outsourcing and systems integration firms like EDS hope to capitalize on the fundamental changes affecting securities firms' back offices and driven by new regulations and technology.
For example, FCI has been working with a number of big securities firms and trust banks, helping them make operational changes required to comply with "T+3" - new Securities and Exchange Commission rules that stipulate, by June, all trades must be settled in three days instead of five.
"Globalization and continuing technological advances are transforming the securities industry," Mr. Reddy said, "and the combined resources of FCI and EDS will enable us to define and deliver value-added service and technology solutions."
Mr. Reddy, who formed FCI in 1993, was previously a senior vice president at Merrill Lynch & Co., where he was responsible for international operations, systems, and telecommunications. He also spent nine years in the operations division at J.P. Morgan & Co.