EPAM Systems, a global player in digital transformation and engineering, has reached a deal to acquire First Derivative, a Northern Ireland-based consulting firm specialising in managed services, and quality assurance.
Although financial details have not been disclosed, the deal aims to strengthen EPAM’s AI-driven, cloud-based, and data-focused capabilities for financial institutions worldwide, the Newtown, Pennsylvania-based firm explained.
Balazs Fejes, president of global business and chief revenue officer at EPAM, called the acquisition “a significant expansion” for EPAM, as it takes over First Derivative’s 1,800 professionals and its entire client base of around 100 banks, hedge funds, and financial services providers.
First Derivative built a name for itself in recent years for delivering advanced software testing, compliance, and risk management solutions, “critical components in an industry that faces increasing regulatory scrutiny and security challenges,” Fejes stressed.
“Financial services companies today must navigate a rapidly evolving digital landscape.”
– Balazs Fejes
EPAM’s acquisition aligns with a fast-growing demand for AI-powered, automated software testing in the financial sector.
With the increasing complexity of financial regulations and cybersecurity threats, robust testing and quality assurance (QA) frameworks are essential to maintaining compliance and mitigating risks.
“By combining First Derivative’s expertise in capital markets with EPAM’s engineering and AI-driven solutions, we are creating a suite of offerings to help institutions improve efficiency, security, and compliance at scale,” he pointed out.
Fejes was keen to stress the move reflects a broader industry trend, where leading firms are consolidating expertise in penetration testing, test automation, and AI-driven QA to ensure financial applications meet evolving global standards.
Timing
EPAM’s expansion into quality engineering and software testing in financial services may be seen as a well-timed move.
According to industry reports, the global financial services software testing market is projected to grow at a more than 11% between this year and 2028, driven by increasing digital transformation, automation, and cybersecurity needs.
With the acquisition, EPAM is positioning itself to become a dominant player in financial software engineering, offering end-to-end solutions for digital banking, risk management, and high-frequency trading platforms as First Derivative is not a small player.
Fejes said that by integrating First Derivative’s financial services expertise with EPAM’s global technology capabilities, the newly merged entity is expected to accelerate innovation and offer AI-driven software quality assurance solutions tailored to financial firms’ evolving needs.
He pointed out that, with regulatory landscapes constantly shifting and cyber threats on the rise, financial institutions require best-in-class software testing to ensure the integrity of their digital ecosystems.
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