Trading technology provider, FDCTech informed Finance Magnates that it has entered into a purchase agreement for the acquisition of Genesis Financial, a financial services company with operations in wealth management and direct-to-customer lending, thus closing the major deal.
The companies officially agreed on the deal with the submission of an 8-K form with the US Securities and Exchange Commission (SEC) last Wednesday. The confirmation came after FDCTech signed a non-binding agreement for the acquisition earlier this year.
The deal received a green light after the board of both the companies agreed on the terms. In addition, Genesis shareholders voted to favor the acquisition deal.
FDCTech will acquire 100 percent equity interest in Genesis Financial in the agreed stock-for-stock deal. Per the agreed terms, Genesis’ existing shareholders will receive 70,000,000 shares of FDCTech, which at $0.50 per share price are valued at $35 million.
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Commenting on the acquisition, FDCTech Co-Founder and CEO, Mitchell Eaglstein, said: “We are pleased to achieve this transformative milestone for the Company (FDTech), its employees, shareholders, and the clients we serve.”
A Strategic Deal for Global Dominance
FDTech, which has an extensive presence in the Americas, is expecting to expand its reach to new markets with the closure of this deal as Genesis’ business is concentrated in the Asia-Pacific region.
Genesis offers advisory services to $540 million funds under advisement and managing $62 million funds under management through its network of 114 licensed advisers. It is expecting over $15 million in fees from wealth management and tax/accounting advisory business.
“Our new GFNL colleagues should be commended for their efforts, along with those of our team, to achieve this turning point for the Company. As a result, the new direction will create a fintech driven well-diversified financial services powerhouse with the focus on high growth financial categories, with a global footprint and access to US capital markets,” Eaglstein added.