Divisa Capital (Divisa UK Limited) has just acquired Laboratory of Financial Technologies CJSC, an Armenian financial services provider, in a bid to foster an eastward growth, according to a Divisa statement.
Subsequent to the acquisition, the new firm will be renamed Divisa AM CJSC and is slated to launch by Q4 2015 as a wholly owned subsidiary of Divisa Capital. Parent company Divisa Capital is regulated by the UK’s Financial Conduct Authority (FCA) and is a provider of API and MT4 prime-of-prime (PoP) solutions for a largely institutional clientele.
The acquisition and upcoming launch of Divisa AM CJSC is intended to capture eastward growth for the company. Divisa Capital intends to use the new subsidiary as a gateway into the Eurasian Economic Union, which lies at the confluence of Russia, the Middle East and Eastern Europe.
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According to Mushegh Tovmasyan, CEO of Divisa Capital in a recent statement on the acquisition, “Armenia has a very strong and highly regulated banking system, which includes the likes of HSBC and Credit Agricole, enabling the country to come through the recent global financial crises unscathed. What has really been an eye-opener is the level of interest shown by big names in the Eurasian Economic Union markets wishing to utilize our expertise and depth of liquidity deriving from our prime-of-prime offering.”
Speaking more on the subject exclusively to Finance Magnates, Mr. Tovmasyan mentioned the propensity of Russian regulation as a possible influent of Divisa’s PoP sector. Ultimately, “We don’t cater to retail clients and rarely engage in marketing activity thus the regulation will not affect us at all. Our target audience is the Banks and hedge funds in Russia.”
While Divisa has eyed the Middle Eastern region as a whole, several specific countries became clear as possible targets to be leveraged by the new affiliate’s strategic location, including “the UAE, Lebanon, Kuwait, and Saudi Arabia based on current industry trends, but the time zone allows us to cater to a much larger region extending to countries in Africa and Southeast Asia,” he added.