OFX acquires Firma, a Canadian corporate foreign exchange business

Skander Malcolm, Chief Executive Officer and Managing Director at OFX

OFX Group Limited (OFX) announced it has completed its acquisition of Firma Foreign Exchange Corporation (Firma) for a total consideration of C$90m (A$98m). The transaction expands OFX’s capability and presence as a global foreign exchange and payments provider.

What are the executive’s thoughts on the acquisition?

OFX Chief Executive Officer and Managing Director, Skander Malcolm said: “We’re excited to complete our first major acquisition, and to welcome our new clients and colleagues.”

“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.”

What does Firma bring to OFX’s portfolio?

OFX will acquire Firma’s product suite and customer portfolio. The deal adds 9,600 clients to OFX’s portfolio and delivers 93% of incremental revenue to its Corporate segment. Firma’s significant addition to OFX’s pre-existing volumes in major currency pairs, like USD/CAD and USD/GBP, will diversify OFX’s currency flows and the industries its Corporate segment serves.

Combining Firma’s service excellence and Corporate expertise with OFX’s service excellence, platform, including global licenses, and tech will enable clients to benefit when moving money across borders, securely, quickly, and cost-effectively as they conduct business globally.

With combined LTM to September 21 pro-forma Group revenue of A$186.5m and EBITDA of A$55.1m, OFX will be a leading Corporate cross border payments provider in Canada.

Completion of the acquisition of Firma’s UK business, Firma Foreign Exchange Corporation (UK) is being finalised and remains subject to regulatory approval. Goldman Sachs is acting as financial advisor on the acquisition. Stikeman Elliot is the legal advisor on the acquisition.