Australia based retail forex broker as well as CFD brokerage group, AxiCorp has announced that it is going to take the acquisition of the One Financial Markets (OFM) brand. Though the AxiCorp basically manages the AxiTrader brand, it has decided to acquire the FCA regulated CB Financial Services Ltd which is primarily based in the Middle East. It has been revealed that the deal will be basically based on cash. So, it will be subjected to several custom regulations.
With this deal, the roads will be paved for Khalifa Butti Bin Omeir, the prime shareholder, founder of OFM and the chairman of the KBBO group circumscribe equity in the AxiCorp.
Once the deal is finalized, AxiCorp will take charge of all the operations, employees and licenses of OFM. As a result, OFM will exist under AxiCorp as a brand thereby maintaining its strong presence in the Middle East, Europe, South America as well as southeast and central Asia.
Both organizations have notified the public that the merger of these two companies is the result of a year worth of negotiations. And this merger did not come as surprise as the consolidation streak continues in the FX and CFD market due to various regulatory changes that are due to happen.
As far as the profit of One Financial is concerned, it saw a net profit of $240,000 from the generated revenue of $28.4 million in the last financial year.
AxiCorp to Consolidate Presence in Middle East
The CEO of AxiCorp, Rajesh Yohannan stated:
“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.”
As the deal happens, the presence of AxiCorp in key markets such as Central and Southeast Asia, UK and Middle East will further be solidified. This joint operation between AxiCorp and OFM will result in $2 trillion estimated trading volume thus it will cement the position of the company in top 10 global FX and CFD providers.
The CEO of OFM, Ashley Clarke commented that:
“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.”
With its headquarters in Sydney, AxiCorp has been working hard to establish itself globally since Rajesh Yohannan took the responsibility of Chief Executive Officer of the company almost two years ago. AxiCorp has also been successful in confirming crucial investments from RGT Capital, a private equity firm.
“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”
Rajesh Yohannan stated and continued to say:
“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.”