Australia’s OFX Group Limited announced on Monday the completion of its acquisition of Canada-headquartered Firma Foreign Exchange Corporation. The deal, which is expected to expand OFX’s presence in the global forex and payments market, has been closed at a total consideration of CA$90 million (around $69.97 million).
The companies first agreed to the acquisition deal last December. The acquisition consideration was evaluated at nine times Firma’s last reported EBITDA.
According to the terms of the deal, OFX now owns Firma’s product suite and customer portfolio. It adds 9,600 clients to OFX’s portfolio. The new owner confirmed that there will be no disruption to existing Firma clients, rather it will focus on building a collective strengthened business.
“We’re excited to complete our first major acquisition, and to welcome our new clients and colleagues,” said Skander Malcolm, OFX’s CEO and Managing Director.
“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.”
Combining the Businesses
The announcement detailed that combining Finra’s business will increase OFX’s corporate segment revenue by 93 percent. In addition, the pro-forma group revenue of the combined firms touched AU$186.5 million with an EBITDA of AU$55.1 million by the end of last September.
Firma was established in 1998 and offers global foreign exchange services to corporate clients. Its primary products include spot and market orders, multi-currency accounts, payments, mass payments as well as forward contracts.
Furthermore, the acquisition will add strong commercial expertise and add to the pre-existing volumes in major currency pairs offered by OFX. OFX will also acquire the UK business of Firma, but that is still pending regulatory approval.
