SYDNEY – (BUSINESS WIRE) – Dec. 20 2021–
OFX Group Limited (OFX) today announced that it has entered into an agreement to acquire 100% of Firma Foreign Exchange Corporation (Firma) for a total amount of C $ 90 million (Australian $ 98 million).
Based in Edmonton, Canada and founded in 1998, Firma is a global provider of foreign exchange services serving corporate clients. As of September 30, 2021, Firma had 194 employees, more than 9,600 corporate clients and operated from 9 offices in Canada, Australia, the United Kingdom and New Zealand.
Firma’s key products include Spot and Market Orders, Multi-Currency Accounts, Payments and Bulk Payments, and Futures. The company has strong business expertise and will significantly increase OFX volumes in major currency pairs such as USD / CAD and USD / GBP, diversifying its currency flows as well as the industries currently served by its segment. Corporate.
The acquisition generates additional revenues for OFX’s Corporate segment of 93% and for its North America region of 121% 1, which represents more than five years of organic growth. With combined LTM sales as of September 21 pro forma for the Group of AU $ 186.5 million and EBITDA of AU $ 55.1 million, OFX will be a leading supplier specializing in corporate cross-border payments in Canada. .
OFX CEO and CEO Skander Malcolm said: “This is our first major acquisition and fully aligned with our strategy of scaling up in the enterprise segment and growing the North American region. Firma generates solid revenue from a high quality customer base and has a great service culture, so there is a lot of alignment with OFX. By bringing our businesses together, we become a much larger business specialist with a strong recurring revenue base and significant growth opportunities.
The total consideration represents 9.0 times Firma’s EBITDA LTM as of September 30, 2021. The acquisition is expected to generate an increase in underlying EPS of approximately. > 20% the first year and> 30% the second year after completion. OFX expects to generate at least $ 5 million in cost synergies and pre-tax revenue in FY25 by leveraging its global technology platform, larger licensing footprint and offering improved products; and advantages of scale such as lower bank charges.
The acquisition will be funded by a secured credit facility and existing liquidity. Upon completion, OFX expects net indebtedness on pro forma EBITDA of approximately 1.5x. Given the strong cash flow profile of the combined entity, OFX expects to repay its debt in less than four years, subject to the emergence of any other value-creating growth opportunity requiring funding. The Board considers it prudent to suspend the share buyback program to give priority to debt repayment.
Mr. Malcolm concluded: “Our business continues to perform well, the positive trends we saw in the first half of the year continue into the third quarter. With the addition of Firma, we can accelerate this growth by combining our infrastructure and risk culture with their customer base and service excellence, thereby delivering profitable growth and value creation to OFX shareholders. “
The acquisition is expected to be completed in the first quarter of fiscal 23 subject to customary conditions.
Goldman Sachs is acting as financial advisor on the acquisition. Stikeman Elliot is acting as legal counsel in connection with the acquisition.
Founded in 1998, OFX is a Sydney-based international money services provider with eight offices around the world and over 400 employees. It offers money transfer and foreign exchange services to individuals and businesses in over 50 currencies. Thanks to its “digital + human” business model, OFX provides 24/7 customer support to complement its global digital platform.
1 On the basis of OFX LTM until the ex-slippage of commissions and trading income (income) of September 2021; calculated growth excluding synergies
See the source version on businesswire.com: https://www.businesswire.com/news/home/20211220005888/en/
CONTACT: Media inquiries:
Tim Powell, Dentsu PR, [email protected], +61 411 725 595
Elaine Herlihy, OFX, elaine.herlihy @ ofx.com, +61 414 290 571
KEYWORD: AUSTRALIA / OCEANIA UNITED STATES CANADA NEW ZEALAND NORTH AMERICA AUSTRALIA
INDUSTRY KEYWORD: FINANCING OF PROFESSIONAL BANKING SERVICES
SOURCE: OFX Group Limited
Copyright Business Wire 2021.
PUB: 12/20/2021 4:56 PM / DISC: 12/20/2021 4:56 PM
Copyright Business Wire 2021.