FX and Contracts For Difference (CFD) trading provider AxiCorp has announced that it will acquire UK-headquartered One Financial Markets (OFM). The deal is predominantly cash-based, the amount is not disclosed, and will be subject to regulatory approvals.
The firms say the deal is a result of more than 12 months of talks between the two companies. The move also comes amid anticipation of further consolidation in the global CFD and FX industry due to upcoming regulatory changes.
AxiCorp says the deal will strengthen its foothold in a number of key markets including the UK, Middle East and Asia.
Under the deal, AxiCorp will acquire all the staff, operations and licenses of OFM. It will retain the OFM brand, which has presence in the Middle East, Europe, South America and Central and South East Asia. The deal will also see majority shareholder and founder, Khalifa Butti Bin Omeir, the chairman of diversified investment group KBBO Group, take an equity stake in AxiCorp.
“We established AxiCorp a decade ago to provide Australian FX and CFD traders with a home-grown option,” says Rajesh Yohannan, AxiCorp’s CEO. “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.”
Ashley Clarke, CEO at OFM, adds, “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.”
Sydney-based AxiCorp has been expanding its global footprint since Yohannan took the CEO role more than two years ago including securing strategic investment from private equity firm RGT Capital.
“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,” says Yohannan. “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 further strategic acquisition in due course.”