Location: New York, NY
Technology – Medium
DONE DEAL: At the end of 2012, Professional Trading Solutions was called Lightspeed Financial and operated solely as a brokerage firm serving clients who traded U.S. securities. However, equity market volumes were declining, which was negatively impacting the company’s revenue. “We wanted to expand our revenue base, and diversify into a more predictable revenue source to smooth out earnings,” says CEO Farid Naib. “We decided to add a division focused on technology sales within our industry. We rebranded our holding company from Lightspeed Financial to Professional Trading Solutions to reflect our ambitions of providing both brokerage and technology solutions to market participants.” As part of its strategic pivot, Professional Trading Solutions also purchased Sterling Trader, a provider of trading software.
Fun Fact: “I financed the purchase of a technology company (not Professional Trading Solutions) by selling my beach house to Howard Stern.”
BIG IMPACT: “Once we acquired Sterling, we had enough of a technology base to invest in both our technology and technology infrastructure, bringing increased stability, speed and functionality to our products,” says Naib. “We were also able to consolidate technology operations, and shaved $2.5 million off our combined run rate.” As a result of the acquisition, Professional Trading Solutions created a new line of compliance software that has already generated significant revenue.