Openmarkets signs agreement to combine with Broad Capital Acquisition Corp.
Openmarkets Group Pty Ltd, the parent company of Openmarkets that provides trading and wealth management tech solutions, and NASDAQ-listed Broad Capital Acquisition Corp, have entered into a definitive Agreement and Plan of Merger and Business Combination Agreement that upon closing will provide the opportunity for OMG to become a publicly traded company.
The transaction is expected to be completed in the second quarter of 2023, subject to regulatory approvals and other customary closing conditions. As of the closing, the combined entity, OMGL Holdings Ltd, an Australian public company, is expected to be listed on the Nasdaq Capital Market.
The transaction reflects an estimated proforma enterprise value for OMG of US$90 million, with another potential US$20 million in earnout over 2 years (subject to achieving certain target revenues), and marks an important step in OMG’s overall growth and capital management strategy.
Dan Jowett, CEO of OMG, commented, “The transaction we announced with BRAC today is another important milestone in OMG’s recent trajectory. The BRAC board’s recognition of our ambition through this merger will allow us to amplify our growth plans, expand our reach into new markets and wealthtech verticals, and continue to strengthen our disruptive B2B solutions for fintechs and finance professionals.”
Johann Tse, CEO of BRAC, added, “OMG is an exciting Australian Fintech company and perfectly positioned to capitalize on evolving industry dynamics such as the growth in independent advice firms, inbound/outbound Asian equity markets expansion and the intergenerational transfer of wealth. We look forward to working with the OMG team in achieving their mission of strengthening their market leading position in Australia and becoming a leader in international markets.”
As part of the transaction, OMG will retain its experienced management team, led by CEO Dan Jowett. The board of directors of the combined company will consist of seven directors, of whom two individuals will be designated by BRAC and of whom five individuals will be designated by OMG.