- INTL FCStone Inc has purchased GIROXX through its British subsidiary, the announcement says
- Deal has a Brexit dimension, with INTL FCStone Inc looking to protect its client base
- "We are very excited about becoming part of such a successful financial group, which we see as essential to expand our product”, said GIROXX spokesperson
German payments provider GIRROX GmbH has been bought by a British subsidiary of the firm INTL FCStone Inc, an announcement has revealed.
GIROXX GmbH is a well-known provider of various payment and forex services and it is a key player in the market for small to medium-enterprises in central European countries such as Switzerland and Germany.
As well as online money transfer services, it also offers forex “hedging” – a practice which helps companies protect themselves against losses when making foreign currency transactions.
INTL FCStone Inc is a financial services firm which offers everything from advisory services to commodity execution options.
The company’s Global Payments Division offers payment services in over 140 local currencies and operates in more than 170 nations.
The deal will now need to be approved by the Bundesanstalt für Finanzdienstleistungsaufsicht [BaFin], which is a German regulator.
It also has a network of around 350 local-based correspondent banking partners.
It is a Fortune 500 firm and has been in existence in some form for almost a century.
One key aspect of the press release announcing the news was a connection between the move and Brexit.
The wording appeared to suggest that the move had been timed to protect clients of INTL FCStone Ltd against the developments.
“This purchase completes a series of acquisitions and company restructuring to ensure that all clients of INTL FCStone Ltd are secure with their continuity of service and market access, and are 100% unaffected by Brexit”, the press release read.
Representatives of both firms expressed their happiness at the news.
Carsten Hils, who works as global head of INTL FCStone's Global Payments Division, said that the firm was “excited about this opportunity”.
"Our objective is to offer SME's the ability to hedge all parts of their production processes, and to allow these corporates to have access to a digital payments and hedging platform”, he said.
“We are clearly one of the first in this market segment to offer such a comprehensive offering and we are excited about this opportunity."
In a joint statement, Klaus Hoffmann and Jörg Sonnenschein – who are the founders and also the managing directors of GIROXX – predicted that the move would help the firm attract new clients.
"We are very excited about becoming part of such a successful financial group, which we see as essential to expand our product”, they said.
“Additionally, we gain the resources to offer hedging services on a multi assets basis with a balance sheet which will help solidify our client base and to expand at a faster pace.”
Developments like these are happening all the time in the international money transfer sector.
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