Alpha Group International plc, known for its financial solutions for corporates and institutions, has officially completed the acquisition of Transaction Services B.V., commonly known as Cobase. This strategic move comes following the initial announcement on 12 September 2023, and the subsequent approval from the Dutch Central Bank.

Alpha Group Announces Cobase Acquisition Completion

The acquisition, which involved compliance Compliance In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a Read this Term with various closing requirements, marks an expansion for the publicly-listed entity. The company invested €9.6 million from its cash reserves for an 85% stake in Cobase.

Additionally, plans are underway for Alpha to acquire the remaining shares of Cobase through a performance-based earn-out. This process is set to take place between 2025 and 2028, reflecting Alpha Group's long-term investment strategy.

Established in 2017, Cobase stands out as a trailblazer in cloud-based banking connectivity Connectivity Connectivity is defined as a term used for connecting devices to each other. In most cases, this refers to computer networking and more specifically includes bridges, routers, switches, gateways, and service as well as local networks. Connectivity can refer to simple forms, such as connecting a home or office to the internet or even connecting a digital camera to a computer or printer. Connectivity in FinanceConnectivity has taken on new meaning with the growth of fintech and Big Data collectio Connectivity is defined as a term used for connecting devices to each other. In most cases, this refers to computer networking and more specifically includes bridges, routers, switches, gateways, and service as well as local networks. Connectivity can refer to simple forms, such as connecting a home or office to the internet or even connecting a digital camera to a computer or printer. Connectivity in FinanceConnectivity has taken on new meaning with the growth of fintech and Big Data collectio Read this Term solutions. Its technology offers a unified interface for corporates to manage banking relationships, accounts, and transactions. This approach is particularly beneficial for international businesses, streamlining operations and enhancing financial efficiency by simplifying the management of multiple banking partners globally.

Alpha Group initially announced its intention to acquire the company in the first half of September, coinciding with the publication of the H1 2023 report. This report revealed a revenue of £55 million, showing a 20% increase compared to the first half of 2022. The report confirmed results first published at the end of July.

The financial services provider stated that its offerings complement those of Cobase, and the acquisition will accelerate Alpha Group's growth rate. Analyses have shown that 80% of Cobase's current client base falls within Alpha's target market.

„The fact that after more than six years as a public company and after considering numerous acquisition opportunities, this is our first investment of this kind is ultimately a testament to the company that Cobase have built,” commented Morgan Tillbrook, the CEO and Founder of Alpha Group.

“Our strong cash generation has given us the opportunity to acquire this highly synergistic platform, and we will continue to analyse the market and review M&A opportunities within our wider capital allocation strategy.”

The Scope of Alpha Group's Operations

Alpha Group, leveraging advanced technology and expertise, provides currency risk management and alternative banking solutions to institutions and corporations in Canada, Europe, and the UK. At the end of 2022, the company decided to change its name from Alpha FX, stating that "the change reflects where we are today as a company, as well as our ambitions to be a leading provider of a growing range of financial solutions."

Almost a year ago, the organization officially announced that Tim Powell had joined its ranks. Powell took on the key positions of Chief Financial Officer and Executive Director of the Board.