FDCTech, a forex and CFDs trading technology provider, announced on Tuesday that it is acquiring Genesis Financial, a financial services company with operations in wealth management and direct-to-customer lending.
According to the terms of an already signed non-binding letter of intent, FDCTech will acquire 100 percent of the issued and outstanding securities of Genesis with a stock-for-stock transaction.
“The acquisition will allow us to advance our proprietary fintech capabilities to Genesis,” FDC’s Chief Executive, Mitchell Eaglstein said on the importance of the deal.
Possibility of Expansion in a Lucrative Market
Genesis’ business is concentrated in the Asia-Pacific region as it operates with two of its Australian entities. The company generated consolidated revenue of $15.6 million in 2020, along with an EBITDA of $1.2 million. Genesis is specifically eying to tap the lucrative wealth management market of Australia, which is expanding with massive potential.
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“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,” Eaglstein added.
“FDC has built an impressive system that is very synergistic with our established Wealth Management team,” said Russell Cameron, CEO at Genesis. “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.”
Meanwhile, FDC is focused on the expansion of its existing services. The company added PayPal as a new payment option on its Condor FX Pro trading platform following the addition of GCEX to its liquidity pool.