Key Insights
- CVC Capital Partners is reportedly seeking to sell FX and CFD broker OANDA, hiring Nomura and Santander to oversee the process.
- OANDA’s potential sale adds to ongoing M&A activity in the sector, following failed public listings by competitors.
- The broker is expected to generate around $175 million in revenue this year, according to the report.
LONDON (MarketsXplora) – Retail foreign exchange and contracts for difference (CFD) broker OANDA is being actively marketed for sale by its private equity owner CVC Capital Partners, Sky News reported on Monday, citing unnamed sources.
CVC, which acquired OANDA in 2018 for a reported $175 million, has enlisted investment banks Nomura and Santander to oversee the sale process, according to the report.
OANDA, led by CEO Gavin Bambury since 2019, is reportedly expecting revenues of approximately $175 million this year, Sky News said without disclosing its sources.
OANDA Joins M&A Frenzy in FX Sector as CVC Seeks Exit
The potential sale adds to a growing list of M&A activities in the FX and CFDs sector. Earlier this year, Copenhagen-based Saxo Bank reportedly hired investment bankers to seek a buyer after a failed attempt to go public via a SPAC merger in late 2022.
Similarly, other top-tier brokers have faced challenges in public listings. eToro’s public offering plans fell through in 2022, while ThinkMarkets withdrew its planned IPO-via-SPAC late last year.
The most recent successful transaction in the sector was Capex.com’s acquisition of NAGA Group (ETR:N4G) through a reverse merger. Announced in December and approved by NAGA shareholders in April, the deal recently received full regulatory approvals and is expected to close by the end of August.
Based on NAGA Group’s current market capitalization, the combined entity is valued at approximately 180 million euros ($196 million).
OANDA and CVC Capital Partners were not immediately available for comment.