AxiCorp Makes Move to Acquire SelfWealth Ltd in $52 Million Deal

AxiCorp Financial Services Pty Ltd, an Australia-based retail FX and CFDs broker has announced its bid to acquire SelfWealth Ltd (ASX), Australia’s most popular low-cost trading platform. Axi values the proposed acquisition at AUD 52 million (USD 34 million) and offers AUD 0.23 per share in cash. 

This move follows a rival bid from Bell Financial Group Limited (ASX), which has proposed a slightly lower AUD 0.22-per-share offer for the same company. SelfWealth, which had seen its stock trade in the AUD 0.12-$0.13 range for several months before these offers, saw a sharp increase in share price in response to the bids, closing at AUD 0.25 on Thursday—above both Axi’s and Bell’s offers.

AxiCorp’s proposal is part of its broader strategy to expand its presence in Australia’s competitive retail trading space. The broker, which operates globally with a client base in over 100 countries, has indicated its readiness to move forward with the Deal swiftly. Axi’s bid is not contingent on due diligence or financing, signaling a smooth and rapid acquisition process.

AxiCorp Makes Move to Acquire SelfWealth Ltd in $52 Million Deal

“We see a strong strategic fit in this acquisition, which would allow us to strengthen our market position in Australia further and expand our offerings to retail investors,” said Rajesh Yohannan, CEO of AxiCorp. “We are prepared to negotiate quickly and enter into a binding agreement to finalize the acquisition.”

SelfWealth, founded in 2012 and listed on the Australian Securities Exchange since 2017, reported a solid performance in its most recent fiscal year, posting revenues of AUD 27.6 million and a net profit of AUD 3.4 million. The platform currently has 129,000 active portfolios and manages AUD 10.7 billion in funds under administration.

For SelfWealth, the bidding war is a testament to its growing significance in Australia’s online brokerage landscape. Bell Financial, a major player in the industry, has also expressed interest. However, analysts suggest Axi’s more favorable terms and the size of its existing customer base may position it as the frontrunner in the race to acquire the company.

Axi, a privately held company following a 2022 management buyout, operates in the highly regulated FX and CFD space. With over 400 employees across 11 offices worldwide, Axi serves tens of thousands of active clients. The company has been expanding its footprint in key markets and sees SelfWealth as a potential avenue for further growth in the Australian retail trading sector.

As the bidding war intensifies, market observers closely watch how this Deal unfolds, with many anticipating a counteroffer from Bell Financial or potentially another bidder emerging. For now, Axi’s offer is the highest on the table, and SelfWealth shareholders are to benefit from the ongoing developments.

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