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What are the M&A activity trends in margin FX sector?

Demetris Tsingis, founder of  Fincap Advisors, has discussed M&A activity trends in the margin FX sector with Natallia Hunik. In this episode, we covered the recent sale of Finalto by Playtech, discussed what multiples can one expect when exiting the FX business and if it’s a good time to sell the brokerage.

Highlights:

  • Demetris Tsingis shared with the audience his background and success story. He discussed what promoted him to start his own advisory shop. Knowingly, prior to starting his own firm, he worked for a marquee consulting firm in Cyprus K.Treppides & Co.
  • In this episode, Natallia Hunik and Demetris shared their insight on specific recent mergers and acquisitions of Finalto.
  • The cash offer from the consortium is up to $210m, comprising an initial $185m, of which US$15m is deferred for up to two years from completion. A further $25m is contingent on certain cash flow or other criteria being met by the business carried on by the Finalto group. Formerly known as TradeTech, the division secured revenue of €121.9m for 2020, representing growth of 80 per cent, and adjusted EBITDA of €56.4m, up 623 per cent.

Data source:
https://data.fca.org.uk/artefacts/NSM/data-migration/LSE20150402070013_012304001.html
https://data.fca.org.uk/artefacts/NSM/data-migration/LSE20170823070004_13338670.html
  • Natallia and Demetris shared their opinions regarding most of the deals that happened in the industry.

  • Natallia and Demetris also shared their views about Cyprus as a destination for FX brokers. Few years ago, many exited Cyprus due to tightening regulations and ESMA rules. Demetris suggested what could be the trends, if there would be an uptick in interest given Brexit and loss of passporting rights for the UK brokers.

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