IFX acquires majority stake in Axia FX
19 June 2006 | 1417 views | 0
Source: IFX Group
IFX Group plc is pleased to announce that it has invested in a majority stake in Axia FX (Axia), a start up venture in the rapidly expanding foreign exchange (FX) delivery market.
Axia provides an FX delivery service aimed at small and middle market companies and retail investors. This investment brings together the significant industry experience of the team at Axia with the expertise at IFX in developing and marketing a diverse range of financial products.
The Group has invested £200,000 for a 51% stake in Axia. The management of Axia, David White, Paul Wilson and Paul Statham (founder shareholders), have also granted a three-year option to IFX to acquire a further 29% of the company for between £2 million and £2.5 million. The exercise price of this option is dependent on the performance of Axia in its first two years of operation. IFX has granted the founder shareholders an option lasting six months to re-acquire the stake held by IFX should there be a change in ownership of the Group in this period.
It is anticipated that Axia will be profitable in the first full year following acquisition.
Edmond Warner, Chief Executive, said: "We are excited at the prospect of building a delivery foreign exchange business with an experienced management team. Axia will sit well alongside our current FX operations and will benefit from exposure to our global retail customer base. This acquisition is further evidence of IFX's desire to create a broad portfolio of financial trading services for investors worldwide."