OFX to Acquire Canadian FX Firm Firma

OFX Group Limited (OFX) today announced that it has entered into an agreement to acquire 100% of Firma Foreign Exchange Corporation (Firma) for a total consideration of C$90m (A$98m).

Based in Edmonton, Canada and founded in 1998, Firma is a global foreign exchange service provider servicing Corporate clients. As at 30 September 2021, Firma had 194 employees, over 9,600 Corporate customers and operates from 9 offices in Canada, Australia, the UK, and New Zealand.

The acquisition delivers incremental revenue to OFX's Corporate segment of 93% and to its North America region of 121%, representing more than five years of organic growth. With combined LTM to September 21 pro-forma Group revenue of A$186.5m and EBITDA of A$55.1m, OFX will be a major specialist Corporate cross border payments provider in Canada.

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 in Canada and the North American region. Firma generates strong earnings from a high-quality customer base and an excellent service culture, so there is a lot of alignment with OFX in terms of strategy and values.

"We are excited to bring our businesses together to better serve Canadian clients. We see significant opportunities to invest and grow our footprint and team in the region. Our intent is to learn from the Firma team and leverage their strengths as they transition to be part of the OFX team," added Mr Malcolm.

The combined business will continue to operate in Edmonton and other Canadian cities, including Toronto, where OFX Canada is headquartered. OFX expects to deliver significant benefits to Firma clients through leveraging its global technology platform, its larger footprint of licenses, as well as an enhanced product offering. Benefits of scale and technology will also result in operating cost efficiencies such as lower banking fees.