OFX Group to complete acquisition of Firma FX business in 2023

abdelaziz Fathi

Sydney-headquartered OFX Group Limited today announced that it has agreed to take full ownership of Firma Foreign Exchange Corporation for a total consideration of C$90 million ($69.62 million).

Canada-based Firma generated approximately $7.7 million in adjusted EBITDA in the FY 2021, meaning that the price tag amounts to 9× of its earnings before interest and taxes. Subject to customary conditions, and pending regulatory approvals, the takeover will likely be completed in the first quarter of 2023.

Founded in 1998, Firma is headquartered in Edmonton and provides multi-currency accounts, payments and mass payments, spot and forward products to about 10,000 corporate clients. The 23-year-old money service business reports that its client’s average transaction value is about $60,000.

OFX Chief Executive Officer and Managing Director, Skander Malcolm said: “This is our first major acquisition and very much aligned with our strategy of building scale in the Corporate segment and growing the North American region. Firma generates strong earnings from a high-quality customer base and has an excellent service culture, so there is a lot of alignment with OFX. By bringing our businesses together we become a much bigger Corporate specialist with a strong recurring revenue base and considerable growth opportunities.”

Firma had 194 employees spanning nine offices in Canada, Australia, the U.K., and New Zealand.

FinanceFeeds webinar: Expert panel to discuss market data for multi-asset brokerages  

In consideration of the acquisition of Firma, OFX Group (formerly OzForex) will use underwritten debt facility and existing cash to fund the deal.  The company also noted that it expects the buyout to grow its corporate segment revenue by 93% and contributes to a 121% increase in the merged entity’s activity in the North American region.

Specifically, OFX will leverage Firma’s capabilities to significantly increase volumes in major currency pairs such as USD/CAD and USD/GBP. The savings would represent more than five years of organic growth, as well as diversifying OFX’s currency flows.

Given the strong cash flow profile of the combined entity, Australia-based OFX expects to repay its debt in less than four years.

Mr Malcolm concluded: “Our business is continuing to perform well, with the positive trends we drove in the first half continuing into the third quarter. With the addition of Firma we can accelerate that growth by combining our infrastructure and risk culture with their customer base and service excellence, delivering further profitable growth and value accretion for OFX shareholders.”

Read this next

Retail FX

CySEC delists Leverate from investor compensation fund

The Cyprus Securities and Exchange Commission (CySEC) announced that Leverate, a provider of brokerage solutions for the financial services industry, has been excluded from its investor compensation fund today.


Top Crypto Investment: BlockDAG Outpaces Bitcoin Price and Cardano ADA Upgrades, Securing $19.3M in Revolutionary Presale

After plummeting below the crucial $70,000 mark amidst geopolitical tensions, the Bitcoin price is signalling a recovery as it climbs past $63,000. Concurrently, Cardano ADA upgrades, particularly the much-anticipated Chang Hardfork.

Fundamental Analysis, Tech and Fundamental

Global FX Market Summary: Middle East, US economic data, Eurozone data April 22 ,2024

US Dollar strengthens as easing Middle East tensions and strong economic data boost investor confidence, while dovish central banks and weak data weigh on the Euro.

Digital Assets

Thailand moves to block crypto websites to combat online crime

Thai authorities announced that they will block access to unauthorized cryptocurrency platforms. The decision was made after a meeting of the Technology Crime Prevention and Suppression Committee.

Tech and Fundamental, Technical Analysis

GBPUSD Technical Analysis Report 22 April, 2024

GBPUSD currency pair can be expected to fall further toward the next support level 1.2200, previous strong support from November.


TT now enables users to create synthetic multi-leg instruments

“TT Splicer combines the ease and flexibility of TT’s market-leading Autospreader with the power of our best-in-class execution algos to uniquely minimize slippage and optimize trade execution when trading synthetic multi-leg spreads.”


Imandra launches FIX Wizard: AI assistant for FIX connectivity suite

“LLMs hold tremendous promise, but ultimately cannot be trusted in regulated environments. By combining their strengths with scalable, rigorous automated reasoning, we obtain a kind of magic: conversational interfaces with correct reasoning and domain-specific skills.”


Sui Overflow Hackathon Funding Pool Balloons to $1,000,000 as New Sponsors Join

Alibaba Cloud, AngelHack and dWallet are among the latest supporters for the global event.

Institutional FX

Liquidnet launches SuperBlock Matching for equities trading

“The creation of a protected space to trade the most challenging blocks is a direct response to a request from our Membership and is an extension of our existing block trading offering, to facilitate more complex and nuanced trades.”