Triple Point announced late yesterday that they have acquired Investment Support Systems Inc. (Innsinc), a treasury management and regulatory compliance solution provider. As described in Triple Point’s press release, Innsinc “develops and markets treasury and risk management software solutions, including products to enable companies engaged in the procurement, processing or marketing of commodities or energy products to obtain and maintain beneficial commodity hedge accounting treatment, perform derivative instrument fair value level assignments and maintain regulatory compliance under Sarbanes-Oxley, FAS 133, IAS 39, SAS 133, CICA 3865, AASB 139, IFRS 7 and FAS 157.”

Immediately following on this announcement from last night, Triple Point issued another press release this morning announcing the launch of Commodity XL for Hedge Accounting ™, the first product in what they are calling their “treasury management and regulatory compliance suite.” According to this release, they have “seamless integration between Commodity XL’s trading, risk management and hedge accounting function”…apparently this work has been under way for a while.

This acquisition provides Triple Point a unique capability when compared to the other ETRM/CTRM vendors in the market. With the Inssinc products, TPT can now provide a unmatched comprehensive solution for companies that are actively hedging commodity positions on a large scale. Inssinc, like TPT, has been successful at capturing clients across multiple commodity classes, including energy, ags (softs), and currency exchange.

I had a brief chat with Michael Schwartz, TPT’s VP of Marketing, about the acquisition. He indicated that there was some overlap in the client bases of the two companies, but there is also good opportunity to cross sell each company’s applications. A quick reading of Inssinc’s past press releases reveals a client list that includes banks, railroads, E&P’s, utilities and energy traders.

This is the second significant acquisition for Triple Point in less than a year. Last September they announced the purchase of CoralGrid, an India based software house producing solutions for the precious metals trading space - further expanding TPT’s reach outside of energy trading.

Doing some “back of the envelope” calculations, this latest acquisition should add a minimum of $10 million, and potentially up to $15 million, in revenue to TPT’s income statement, moving the company closer to a potential public offering. Depending upon the success of Open Link’s IPO, we could see Triple Point moving sooner than later.

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