FDCTech to enter Australia via Genesis Financial acquisition
The FX and Crypto technology provider is looking to expand its multi-asset solutions to the Asia Pacific region, starting with Australia’s $3.9 billion wealth management market.
FDCTech, formerly known as Forex Development Corporation, has signed a non-binding letter of intent (LOI) to acquire the whole equity of Genesis Financial. The deal will allow the California-based FX technology provider to bring its multi-asset trading platform to Australia and the APAC region.
FDC will buy 100% of the issued and outstanding securities of Genesis for a stock-for-stock transaction so that the latter becomes a wholly-owned subsidiary. Genesis has reported a consolidated revenue and EBITDA in U.S. dollars for the 2020 fiscal year of $15.6 million and $1.2 million, respectively.
The Australian Wealth Management industry generates close to $3.9 billion in annual fees as the ecosystem boasts more than 25,000 financial advisors managing 2.2 million investors. Genesis will leverage FDC’s software to tap into the at least 10 million adults who are underserved or not served at all by the Australian Financial Advisors, according to Aite research.
Russell Cameron, Chief Executive Officer at Genesis, said: “FDC has built an impressive system that is very synergistic with our established Wealth Management team. We expect the coming together of these two companies will enable Genesis to create a competitive advantage in response to technological change and increasingly sophisticated consumer expectations to compete with other legacy Wealth Management platforms successfully. We believe the combination of our two companies will be advantages for both parties and enhance future growth.”
Mitchell M. Eaglstein, Chief Executive Officer at FDC, commented: “We look forward to closing the transaction with Genesis. The Acquisition will allow us to advance our proprietary fintech capabilities to Genesis. Coupled with our distinct competencies in developing globally compliant multi-asset trading platform and a comprehensive back-office solution will give the Company a strong competitive advantage to expand Genesis’ growth strategy in Australia and other Asia Pacific Region.”
FDC delivers trading technology solutions to forex market participants looking to access the retail and institutional spot forex markets. It was founded in 2016 by Mitch Eaglstein under the name Forex Development Corporation.
He launched the firm after three years at Boston Technologies, where he led the Prime Brokerage and eCommerce divisions. His career also includes two years at FXCM Systems as the CIO, where he provided white label and software development solutions to the trading company.
IS Prime has recently announced the offering of liquidity via FDCTech’s Condor FX Pro platform. A number of IS Prime’s use FDC as a front-to-back solution. Condor FX Pro is a complete trading suite for retail brokers, fund managers and traders with proprietary charting tools, advanced order types, level II pricing, multi-tier margin management and regulatory reporting tools.
