Reports ComTech Analyst Briefing Note of EKA

ComTech Analyst
Briefing Note
Eka
Overview
Though a relatively new entrant into Commodity Trading and Risk Management (CTRM) markets, Eka
has found considerable success in selling products to a global base of users across multiple categories,
including agriculturals, softs, metals, consumer products and most recently, energy. Founded in
2004, its’ initial successes were primarily in the Asia-Pacific markets; however, with success in
servicing a growing roster of global-scale clients, its’ market reach now extends to include Europe,
Africa, and North America.
In 2008, Eka established its’ Americas headquarters in Norwalk CT and has continued to add
executive, product management, sales and delivery staff in that location. The company maintains
their primary software development center in Bangalore and has development centers in Canada,
the US and Australia.
Prior to 2013, revenue growth had been organic with the company successfully acquiring a number
of blue chip customers including Cargill, Louis Dreyfus, Noble, Tata and Graincorp.
In 2013, the company undertook an aggressive strategy to develop a comprehensive solution for the
Commodity Management (CM) markets, supplying software products to address the needs of the
world’s largest commodity merchants, processors and traders. In line with this strategy, Eka acquired
EnCompass Technologies of Calgary in early 2013 to bolster their energy commodity capabilities; and
later in the year acquired MatrixGroup, an Australian-based provider of mining and bulk commodity
handling software.
In order to fund additional acquisition activity and support rapid development of new functional
capabilities in support of Eka’s “Smart Commodity Management” initiative, the company accepted a
strategic investment from Silver Lake Kraftwerk in October 2013. Terms of the investment were not
disclosed however, it is believed that the total investment was between $30-$40 million, providing
the company with a substantial war chest with which to pursue additional acquisitions.

Recent Acquisitions
EnCompass Technologies, acquired in April 2013, provides the company with strengthened
capabilities in gas, power, and crude, and energy risk management. The company’s North American
based clients include EDF and Twin Eagle, giving Eka a new and significant presence in North American
energy markets. Eka has undertaken an aggressive plan to integrate the EnCompass products into
the underlying Eka technical architecture.
The EnCompass acquisition provides Eka a solid model for servicing North American opportunities in
power generation and natural gas production, trading and marketing. The product’s crude
capabilities are limited, though additional development is currently underway in cooperation with
clients and should show significantly enhanced functionality during the first half of 2014.
As the EnCompass products were developed for the US and Canada markets, their fitness for serving
European gas and power opportunities will be limited without additional development efforts.

© Commodity Technology Advisory llc

January 2014

At a Glance
Company Background
Founded:
CEO:
President and COO:
Offices:

Employees:
Website:

2004
Manav Garg
Rick Nelson
Norwalk CT, US
Bangalore India
Richmond UK
Calgary CAN
Adelaide AUS
Singapore
400 (Est.)
Ekaplus.com

Products
Eka.Agriculture
Eka.Metals
Eka.Energy
Eka.Analytics
Eka.Risk
Eka.Commodity Planning & Procurement
Eka.Bulk Handling
Eka.Site Automation
Eka.Anti Collision
Eka.3D Stockpile Manager
Eka.Commodity Site Manager

Market Profile (ComTech Est)
Customers by Geography
North America
South America
Europe
Africa
AsiaPac including Aust.

20%
-%
15%
10%
55%

Customers by Market Segment3
Ag Producers
Ag Processors
Ag Traders
Energy Producers
Energy Traders
Metal Producers

20%
25%
20%
8%
7%
20%

Financial Results
Eka is a privately held company and
does not disclose financials though
the company has provided the
following statement “Eka’s 2013
organic revenue growth of 33% and
EBITDA growth of 96%”
1