Buy-Side Technology Awards: Best Overall Buy-Side Technology Provider for 2012─Markit

The acquisitions of data management specialist Cadis; Trade EQM, a TCA tool from Quantitative Services Group; and Data Explorers, a provider of benchmarking information to the securities-lending industry-all of which occurred over the last 12 months─will provide Markit with significant additional recurring revenue streams, as all three providers boast deep buy-side penetration. Markit will also no doubt be eyeing cross-selling opportunities across its substantial buy-side client base, a strategy likely to prove popular for asset managers looking to rationalize their vendor relationships, while at the same time benefitting from the firm's market-leading product lineup.

Markit, founded by CEO Lance Uggla and small group of TD Securities executives back in 2001 with the aim of providing buy-side and sell-side firms with a reliable and transparent credit default swap (CDS) pricing service, is a fine example of what can be achieved with the right product or service and the right people in a relatively short period of time in the financial services industry. In little over a decade, the firm has grown its headcount to more than 2,500 with offices in all the financial industry's hot-spots.

But while growing through acquisition has the ability to fast-track a firm's size and profitability, it does have its potential pitfalls, chief among which is the danger of hurting the acquired brands. Of course, Markit's head honchos will be aware of this, but premium brands are delicate things and this industry has witnessed more than a handful of acquisitions that have failed to deliver the anticipated benefits.