OFX Group Limited completed the acquisition of FIRMA Foreign Exchange Corporation.
May 30, 2022
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OFX Group Limited (ASX:OFX) entered into an agreement to acquire FIRMA Foreign Exchange Corporation for CAD 90 million on December 20, 2021. The consideration represents 9.0x Firma's last-twelve-months EBITDA to September 30, 2021. The deal consideration will be funded from an underwritten debt facility of CAD 91.71 million and the costs of the transaction including adviser fees, debt underwriting fees and insurance costs will be funded from available cash and the debt facility. FIRMA Foreign Exchange Corporation had revenues of CAD 47.53 million and EBITDA of CAD 9.98 million for the year ending September 30, 2021. The transaction is subject to customary approvals and is expected to close in April 2022. The transaction is expected to deliver underlying EPS accretion of more than 20% in the first year and more than 30% in the second year, with significant opportunities for cost and revenue synergies. Goldman Sachs acted as financial advisor and Stikeman Elliot acted as legal advisor to OFX Group Limited on the acquisition. The acquisition is expected to complete in first quarter of FY23 subject to customary conditions. BofA Securities, Inc. acted as financial advisor to Firma Foreign Exchange Corporation.
OFX Group Limited (ASX:OFX) completed the acquisition of FIRMA Foreign Exchange Corporation on May 1, 2022. The transaction is still subject to approval by the Financial Conduct Authority.
OFX Group Limited is an Australia-based company, which is engaged in provision of international payments and foreign exchange services. It helps businesses and individuals to securely send and receive money, without bank fees. Its segments include APAC, North America and EMEA. Each region serves consumers, corporates, online sellers, and enterprise clients. It provides simple payments to over 170+ countries online, in app, or over the phone with one of its OFXperts. Its Global Currency Account can make running clients' international or eCommerce business easier. Its eCommerce and business clients, the OFX Global Currency Account, allows clients to have up to seven foreign currency accounts, so they can pay invoices, receive payments, and easily reconcile transfers in euros, dollars or yen. An OFXpert will support and tailor solutions to clients' business needs. It operates through various offices in London, Dublin, Sydney, Auckland, Hong Kong, Singapore, Toronto and San Francisco.