Singapore-based financial technology group ayondo has revealed plans to sell its UK subsidiary, ayondo markets, to Dutch fintech company BUX.
Image: ayondo mulls sale of ayondo markets to BUX. Photo: courtesy of Pixabay.
In this connection, ayondo has signed a non-binding head of terms document with BUX to further explore the potential transaction.
BUX is already a tied agent of ayondo markets and also its largest customer.
ayondo, in a statement, said: “The aforesaid heads of terms is only an expression of intent, which does not create any legally binding nor enforceable obligations for the proposed disposal. Details of the exploratory discussions remain confidential pending formalisaton and execution of a definitive agreement.”
The company said that as part of the exploratory discussions, it has approached the UK’s Financial Conduct Authority (FCA) to review the proposed transfer of ownership in ayondo markets and other things. The FCA feedback is due to come.
Financial terms of the potential transaction were not disclosed.
Founded in 2008, ayondo specializes in financial trading technologies. The SGX-listed company covers a range of services in the Finance 2.0 field, including both retail and institutional sectors, and claims to have users from more than 195 countries.
The company’s subsidiaries are authorized and regulated in the UK and Germany.
Currently, the Singaporean firm, which has over 25 B2B partners, ranging from white label partners to introducing brokers, offers self-directed trading and also social trading services.
In addition to the FCA-regulated investment firm ayondo markets, the group’s portfolio includes ayondo, a technology and service provider, and ayondo portfolio management, a social trading provider. Both the businesses are based in Frankfurt, Germany.
The proposed divestiture of ayondo markets will be subject to required approvals such as regulatory and shareholders’ approvals.
The transaction, if taken up and closed, could see BUX and ayondo continue as key partners with the Dutch company to continue its existing support for the latter’s remaining social trading activities.
Headquartered in Amsterdam, BUX enables people to engage in the financial markets through its mobile platforms for stock investing and CFD trading. Since its launch in 2014, the Dutch fintech company claims to have made the markets accessible for about two million users from nine European countries.