OFX Group considers large cash deal of its own

Two years after former GE Capital Australia and NZ boss Steven Sargent took the top seat around OFX Group’s boardroom table, the money transfers company’s executives have an interesting proposition for him and the board.

Street Talk understands OFX Group has set its sights on an offshore acquisition, which would help the company meet one of its strategic goals which is to expand into Europe and the United Kingdom.

The question is what could be on its radar.

OFX Group, which reported $19.6 million profit last financial year and has about a $550 million market capitalisation, would no doubt like something big enough to be meaningful, but not big enough to break the bank.

So well-placed sources are pointing to private equity-owned Currencies Direct, which was acquired by buyout firm Palamon Capital Partners for about £200 million in 2015.

Currencies Direct is another specialist foreign exchange and payment solutions company, that handles payments via its proprietary software platform. The company focuses on high net worth clients and small to medium sized enterprises with customers globally.

Should OFX Group pull the trigger, it would be a big deal for the company and a significant step change in its strategy.

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Source: OFX Group considers large cash deal of its own | afr.com