OFX Completes C$90m Acquisition of Canadian Corporate Foreign Exchange Business Firma Foreign Exchange Corporation (Firma)

Rhea-AI Summary

OFX Group Limited has completed its acquisition of Firma Foreign Exchange Corporation for C$90m (A$98m), enhancing its presence in the corporate payments market. This acquisition adds over 9,600 clients and boosts the corporate segment's revenue by 93%. Chief Executive Officer Skander Malcolm emphasized maintaining uninterrupted service for Firma's clients. The integration of Firma's expertise and client portfolio is expected to diversify OFX’s currency flows and strengthen its global platform. The acquisition's completion is pending regulatory approval for Firma's UK business.

Positive

• Acquisition of Firma adds over 9,600 clients, increasing corporate segment revenue by 93%.
• Combining Firma's expertise enhances OFX's ability to serve clients globally.
• Total pro forma group revenue projected at A$186.5m with EBITDA of A$55.1m.

Negative

• Acquisition completion pending regulatory approval for the UK business, which may delay integration.

• Firma is a global payments and foreign exchange service provider based in Edmonton, Canada, with specialist FX products and services for Corporate clients
• Acquiring Firma provides OFX with greater scale in the Corporate segment and North America region, adding over 9,600 clients and increasing OFX’s Corporate segment revenue by 93%
• There will be no disruption to Firma clients as OFX builds on the collective strengths of both businesses
• The acquisition of the UK business, Firma Foreign Exchange Corporation (UK) (Firma UK) will complete upon requisite regulatory approval

SYDNEY--(BUSINESS WIRE)-- OFX Group Limited (OFX) today announced it has completed its acquisition of Firma Foreign Exchange Corporation (Firma) for a total consideration of C$90m (A$98m). The transaction expands OFX’s capability and presence as a global foreign exchange and payments provider.

OFX Chief Executive Officer and Managing Director, Skander Malcolm said: “We’re excited to complete our first major acquisition, and to welcome our new clients and colleagues. As we bring our businesses together, our first priority will be ensuring there is no disruption to Firma clients or employees. We look forward to building on our collective strengths and excellent service culture by enhancing the experience for clients with our digital capabilities.”

Under the deal, OFX will acquire Firma’s product suite and customer portfolio. The acquisition adds 9,600 clients to OFX’s portfolio and delivers 93% of incremental revenue to its Corporate segment¹. Firma’s strong commercial expertise and significant addition to OFX’s pre-existing volumes in major currency pairs, such as USD/CAD and USD/GBP, will diversify OFX’s currency flows as well as the industries its Corporate segment serves.

Combining Firma’s service excellence and Corporate expertise with OFX’s service excellence, global platform, including global licenses, and technology will enable clients to benefit when moving money across borders, securely, quickly, and cost-effectively as they conduct business globally.

With combined LTM to September 21 pro-forma Group revenue of A$186.5m and EBITDA of A$55.1m, OFX will be a leading Corporate cross border payments provider in Canada.

Completion of the acquisition of Firma’s UK business, Firma Foreign Exchange Corporation (UK) is being finalised and remains subject to regulatory approval.

Advisors
Goldman Sachs is acting as financial advisor on the acquisition. Stikeman Elliot is acting as legal advisor on the acquisition.

About OFX
Founded in 1998, OFX is an international money services provider based in Sydney with eight offices across the world and more than 400 staff. It offers money transfers and foreign exchange services for consumer and business clients across 50+ currencies. Through its “digital + human” business model, OFX provides 24/7 client support to complement its global digital platform.

____________________
¹ Based on OFX LTM to September 2021 Fee and Trading Income (Revenue) ex-slippage; growth calculated excluding synergies

View source version on businesswire.com: https://www.businesswire.com/news/home/20220501005055/en/

Media enquiries:

Mariel Malabanan, Haystac dentsu, Mariel.Malabanan@haystacdentsu.com.au,+ 61 416 512 890

Source: OFX Group Limited

FAQ

What is the significance of OFX's acquisition of Firma Foreign Exchange Corporation?

The acquisition increases OFX's corporate segment revenue by 93%, adding over 9,600 clients, and diversifies its currency flows.

How much did OFX pay for the acquisition of Firma?

OFX acquired Firma for a total consideration of C$90m (approximately A$98m).

What impact will the acquisition have on OFX's corporate segment?

The acquisition is expected to significantly boost corporate segment revenue and enhance service capabilities.

When is the acquisition of Firma's UK business expected to complete?

The completion of the acquisition is pending regulatory approval.

How will OFX ensure service continuity for Firma's clients?

OFX's CEO stated that maintaining service continuity for Firma's clients is a top priority during the integration.