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AxiCorp to takeover OFM
Posted on Tuesday, 07 August 2018 11:05
Established financial services company Axicorp has made its move to assert itself on the Middle-Eastern market by buying UK online broker One Financial Markets (OFM) for an undisclosed sum.
The transaction will be issued primarily in cash and remains subject to regulatory approvals.
Under the terms of the purchase, Axicorp will acquire all of OFM’s staff, operations and licences but the target will retain its brand.
A deal comes amid 12 months of negotiations between the two companies, during a period in which the buyer’s contracts for difference (CFD) and Forex (FX) industry is expecting further consolidation due to imminent regulatory changes.
Benefits of the acquisition include greater exposer to OFM’s strong international presence in the Middle East, South America and South-East Asia.
It is estimated that the combined strength of the companies will generate an annual trading volume of around USD 2,000 billion.
Axicorp’s global stature in the FX and CFD industry also allows OFM room for expansion and visibility in this sector.
The buyer’s chief executive Rajesh Yohannan, said: “We have laid a solid and strategic foundation for global growth in recent years and we’re now delivering against this plan.
“Expansion will be fuelled by a combination of product development and acquisitions across the industry.”
Axicorp said in the statement that its compound annual growth rate (CAGR) for revenue and earnings before interest, taxes, depreciation and amortisation (EBITDA) has surpassed larger public FX and CFD companies in the last two years.
Headquartered in Sydney with operations across 100 countries and 30,000 clients, the company currently turns over USD 1,500 billion in trading volume per annum.
It has experienced a 35.0 per cent CAGR in 2018, up USD 100.50 million compared to USD 42.50 million in 2015.
According to Zephyr, the M&A database published by Bureau van Dijk, there have been 41 deals targeting securities and commodity exchanges providers announced worldwide since the beginning of 2018.
The largest of these deals takes the form of a minority stake in Singapore Exchange for USD 298.16 million by an undisclosed acquiror.
© Zephus Ltd