Alpha Group seals Cobase majority acquisition

abdelaziz Fathi

Foreign exchange service provider Alpha Group International plc (AIM: ALPH) has finalized its acquisition of Financial Transaction Services, operating as Cobase.

Alpha FX

The acquisition, initially announced in September, involves Alpha purchasing an 85% stake in Cobase for €9.4 million (£8.0 million) in cash, a transaction that was subject to approval by De Nederlandsche Bank, the central bank of the Netherlands.

The deal also includes provisions for Alpha to acquire the remaining 15% stake through a performance-based earn-out scheduled between 2025 and 2028.

Cobase, established in 2017 by founder Jorge Schafraad and initially funded by ING Ventures, specializes in providing a unified platform for managing banking relationships, monitoring accounts, and viewing transaction activities. The platform can be accessed directly or through connections to Enterprise Resource Planning (ERP) systems. Other notable features offered by Cobase include a central payments hub and a cash and treasury management interface.

Based in Amsterdam, Cobase employs a team of about 30 professionals. The acquisition by Alpha Group is expected to bring synergies between the two firms, with Cobase continuing to operate under its existing brand, team, and technology. This strategic move allows Alpha to enhance its treasury services, thereby complementing its existing foreign exchange risk management services.

The acquisition marks Alpha Group’s expansion into multi-bank connectivity and treasury management, positioning the company to offer a broader range of financial services to its clients. The integration of Cobase’s technology and expertise is anticipated to strengthen Alpha’s capabilities in providing comprehensive financial solutions.

Schafraad commented on the acquisition in a statement: “We are delighted to join the Alpha Group as it is a client-driven and innovative company in a field adjacent and closely aligned to ours. They have clearly achieved a leading position in their market and are as such an enviable partner, and we are convinced that this will unlock exciting new opportunities for our customers, partners and team going forward.”

Alpha Group also revealed that it plans to open its sixth office in Madrid later in the year after it has already built up a sizeable Spanish speaking client base. The Madrid team will be led by long-term Alpha’s employees who have been penetrating these markets from London since 2017. The new office space will also generate a number of jobs for local talents within the B2B sector, as Alpha Group looks to maintain attractive profit margins.

The group already caters to a wide range of clients, including medium sized corporates that deal with currency conversion, international commerce, and payrolls.

The corporate finance specialist has chosen Bristol as the location of its new sales office to drive further growth through providing its existing offering to smaller corporates. The office was initially established in January 2022 to focus on UK companies with turnovers of £5m – £30m, compared to larger cap firms that Alpha has historically served.

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