Sydney-based ASIC regulated retail forex and CFDs brokerage firm, AxiCorp that primarily operated the AxiTrader brand, has announced the acquisition of FCA regulated CBA Financial Services Ltd, which operates One Financial Markets (OFM) brand.
One Financial is a global award-winning online broker offering services to retail and institutional investors and has a strong presence in the Middle-East, Europe, South America and Central & South-East Asian markets. The deal is primarily cash-based and is subject to necessary regulatory approvals. In 2017, OFM had revenue of $28.4 million and net profits of $240,000.
Under the terms of the deal, AxiCorp will absorb all staffs and licenses of OFM and will also retain the OFM brand. The deal will see, OFM’s majority shareholder and founder, Khalifa Butti Bin Omeir, the Chairman of diversified investment group KBBO Group, take an equity stake in AxiCorp.
The company has said that the deal is a result of more than 12 months of negotiations between the two companies and comes at a time when the industry is experiencing consolidation in the global CFD and FX industry due to regulatory changes. The acquisition will help AxiCorp in further strengthening footholds in the number of key markets including the UK, Middle East and Asia and will deliver an estimated US$2 trillion annual trading volume from the combined entity. It will further strengthen the company’s position among the top 10 CFD and FX providers globally.
AxiCorp has been in an aggressive global expansion mode since Rajesh Yohannan took the role CEO two years ago. It has also secured significant strategic investment from private equity firm TPG Capital. Rajesh Yohannan commented on the deal:
“We established AxiCorp a decade ago to provide Australian FX and CFD traders with a home-grown option. Our clients now span the globe, so we see the acquisition of a London-based competitor as a milestone both for us and the industry as a whole.”
“We have laid a solid and strategic foundation for global growth in recent years and we’re now delivering against this plan. The expansion will be fuelled by a combination of product development and acquisitions across the industry.”
“Overall demand for forex products is still rising, helped by market volatility and popularity of the product in emerging markets. But with new regulations coming into force this year, we believe consolidation will remain a key theme and expect to have the opportunity to make a further strategic acquisition in due course.”
Ashley Clarke, CEO at One Financial Markets (OFM) commented:
“After building the OFM brand and network in several key markets, this (acquisition) is a great opportunity to get to the next level of growth. And it’s a privilege that we will be part of the global AxiCorp family as we pursue other markets.”
“Given AxiCorp’s focus on continued growth and expansion, we look forward to a stronger presence in the FX and CFD markets.”