Irenic Capital Management, an activist investor headquartered in New York, has increased its shares in FD Technologies, a tech firm situated in Newry currently undergoing significant reorganisation. It is shown in stock market reports that Irenic has raised its shares to upwards of 10 per cent, valued at €41.1 million, reflecting FD’s current share price.
Irenic, which is an activist hedge fund run by Adam Katz and Andy Dodge, invests in public corporations in a collaborative manner with the firm’s leaders to bring about an improved operational and financial performance that will enhance the company’s long-term value. Irenic first acquired a share in FD Technologies in January, gaining 5.8 per cent of the company’s shares from a previously non-notifiable position. This share would have been worth around €23 million based on the company’s share price at that time.
Throughout recent years, Irenic was party to high-level board meetings with Capricorn Energy Plc, a natural gas producer listed in London, and Wagamama, a restaurant chain. In 2022, the fund publicly protested against Rupert Murdoch’s intention to unite Fox and NewsCorp.
After what it labelled as “extensive discussions with shareholders and advisors”, FD Technologies declared splitting into three separate businesses in March this year. This separation will roughly follow the company’s three individual business units. Its marketing tech division, MRP, plans to merge with a US company, CONTENTgine, where FD Technologies will own a stake of 49 per cent.
FD Technologies also plans to divest its consulting and technology arm, KX. Nonetheless, FD Technologies highlighted in a stock market filing in March their intent to take a balanced approach to the separation of KX and First Derivative, particularly with the timing of any transactions, with the aim of ensuring that First Derivative’s divestment reflects its value.
In recent years, FD Technology’s share value has noticeably declined. In the previous year, June, the shares were trading over €21, but have since plummeted to a recent low of under €12.