Marex Group plc has announced its agreement to acquire Aarna Capital Limited. This move aims to expand Marex's operations in the Middle East and enhance its clearing business.

Aarna Capital, based in Abu Dhabi, specializes in clearing, execution, and customized risk management solutions. Its services cover energy, base and ferrous metals, as well as financial markets, including equities, fixed income, and foreign exchange.

Marex Gains Clients with Acquisition

The acquisition will enable Marex to gain additional capabilities in a new location and access approximately 180 local clients. These clients include institutional investors, family offices, and corporate clients, supported by a well-established team.

Marex currently has about 60 employees in Dubai, and this acquisition is expected to complement its existing operations in the region.

“This acquisition meets our strict financial criteria and is at an attractive valuation, representing three to four times expected profit after tax,” commented Ian Lowitt, CEO of Marex.

“We also retain some firepower from the capital raised in our IPO to support further growth investments, as we look to continue to expand and diversify our business.”

Last year, Marex completed the acquisition of Cowen's prime brokerage and outsourced trading business, as reported by Finance Magnates. This acquisition added approximately 160 professionals from eight international offices and various trading and reporting technologies to Marex.

The acquired business operates as part of Marex Capital Markets under the leadership of Jack Seibald and Mike Rosen, who have led it since its inception in the mid-1990s.

Expecting Profit Growth

Financially, the transaction is projected to be accretive to earnings. Marex anticipates that it will contribute around five percent to its profit after tax from the fiscal year ending December 31, 2025, onward.

This includes immediate synergies from Aarna Capital’s operations, which will flow through the Marex platform. The company expects to save on internal clearing fees and increase net interest income through existing financing relationships. The acquisition is anticipated to close in late 2024, pending regulatory approval.

“Our clients will continue to be serviced by our team but will have access to a greater range of products and services from the broader Marex franchise,” said Dmitry Nedvetsky, Senior Executive Officer at Aarna Capital.

“Meanwhile we hope to offer Marex’s clients our services from Abu Dhabi. The Middle East represents an important growth market, and enables Marex to introduce new clients to its platform, increase the capabilities it can offer existing clients, and grow its global footprint.”