AxiCorp to Acquire UK Tech Company Star Financial Systems

AxiCorp, an Australian-owned foreign exchange (forex) and contracts for difference (CFD) trading provider, announced this Thursday that after more than 12 months of talks, it will acquire Star Financial Systems.
Star Financial Systems is a trading technology company headquartered in the United Kingdom. Under the agreement, which is a cash-based deal, will acquire all the technology, staff, operations and licences of Star. The size of the deal and the expected closing date were not disclosed.

However, according to the company’s statement seen by Finance Magnates, the Chief Executive Offer of AxiCorp, Rajesh Yohannan, highlighted that the transaction isn’t necessarily going to be a radical change for the company.
“We view this as a partnership, not an acquisition”, Yohannan said in the statement. “Star has built an enviable reputation and loyal clientele by doing things its own way, under its own direction, and we’re not concerned with trying to change that. What AxiCorp can and will do is add greater liquidity and risk management to the already excellent trading platform APIs and back-office infrastructure.”
AxiCorp is in acquisition mode
The acquisition of Star is the latest in a range for the Australian-based company, having taken over One Financial Markets (OFM), a broker which is popular in the Middle East. Following this, in an interview with the company’s CEO, Yohannan that it was in acquisition mode.
“Most obviously this approach greatly strengthens our end-to-end service and makes AxiCorp a more compelling choice for traders – for example, the addition of Star immediately gives us greater flexibility with what we can offer IB partners and affiliates – but it also encourages future business investment. 
“With each successful acquisition, we’re able to prove to potential partners that we have a clear strategy in place, are focused on growth and have the ability to integrate.”
Appeal of ASIC ASF licence suspension
Amidst its stream of acquisitions, AxiCorp has been having trouble with financial regulators. As , the trading provider appealed the ASIC suspension of its Australian Financial Services (AFS) licence.
In a statement provided to Finance Magnates, AxiCorp said: “We strongly believe that the issues raised by ASIC are generally historical, in many cases self-reported and do not deserve a suspension, which is why we’ve appealed the decision.
“AxiCorp has made significant investment in its Australian compliance function and practices to ensure it is appropriate to meet our obligations with reference to the size and complexity of the business.
“In fact, we’ve recently commissioned an independent review by a highly experienced and qualified risk management and regulatory compliance expert in relation to ASIC’s concerns.  The report (shared with ASIC) made a number of positive observations about AxiCorp’s compliance operations, highlighted some areas that required further work. AxiCorp has completed all of the work required and has taken steps to address the opportunities for further improvement identified by the expert.

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