FDCTech, Inc. (FDCT), a leading developer of regulatory-grade financial technology infrastructure, has announced its acquisition of Alchemy Global Ltd. (Alchemy Global), a strategic move aimed at expanding its market footprint in the Middle East and Asia. This acquisition aligns with FDCT's long-term growth strategy and is expected to close by the third quarter of 2025, subject to customary closing conditions and regulatory approvals.
Transaction Highlights:
- FDCTech intends to purchase 100% of Alchemy Global's shares, with the purchase price comprising Own Funds Capital and a premium of $2,000,000 minus the Own Funds Capital.
- Alchemy Global reported revenues exceeding $4.00 million and a net income of $2.2 million for the nine months ending September 30, 2024.
- Post-acquisition, FDCTech plans to integrate its proprietary trading platform and advanced risk management systems into Alchemy Global, enhancing client offerings and operational efficiency.
Strategic Value Addition:
- The acquisition of Alchemy Global is strategically aligned with FDCT's objective to expand its market footprint in emerging economies with high growth potential.
- Alchemy Global's established presence and regulatory credentials in Seychelles provide a credible platform for FDCTech to enter the Middle Eastern and Asian markets seamlessly.
- Post-acquisition, FDCTech plans to integrate its proprietary trading platform and advanced risk management systems into Alchemy Global, enhancing client offerings and operational efficiency.
- The combined expertise of FDCTech and Alchemy Global can lead to operational efficiencies, cost savings, and the potential for innovative product and service offerings.
Rationale for the Acquisition:
- The acquisition of Alchemy Global is strategically aligned with FDCTech's objective to expand its market footprint in emerging economies with high growth potential.
- The Middle East and Asia represent untapped opportunities in the financial trading and brokerage sectors, driven by increasing demand for innovative trading solutions.
- Alchemy Global's established presence and regulatory credentials in Seychelles provide a credible platform for FDCTech to enter these markets seamlessly.
- The acquisition would position FDCTech's regulatory-grade technology and liquidity solutions as a key player for small to medium-sized brokers often overlooked by large financial institutions, giving it a competitive edge over other industry players.
In conclusion, FDCTech's acquisition of Alchemy Global is a strategic move that aligns with the company's long-term growth strategy. By leveraging Alchemy Global's established presence and regulatory credentials in the Middle East and Asia, FDCTech can expand its market footprint, enhance its client offerings, and strengthen its competitive position in the global financial technology landscape.
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