Alpha Group completes acquisition of Cobase
Alpha Group International plc, known for its financial solutions for corporates and institutions, has officially completed the acquisition of Transaction Services B.V., commonly known as Cobase. This strategic move comes following the initial announcement on 12 September 2023, and the subsequent approval from the Dutch Central Bank.
Acquisition Details
The acquisition involved compliance with various closing requirements and marks an expansion for the publicly-listed entity. Alpha Group invested €9.6 million from its cash reserves for an 85% stake in Cobase. Additionally, plans are underway for Alpha to acquire the remaining shares of Cobase through a performance-based earn-out, set to take place between 2025 and 2028, reflecting Alpha Group’s long-term investment strategy.
Cobase’s Technology
Established in 2017, Cobase is a trailblazer in cloud-based banking connectivity solutions. Its technology offers a unified interface for corporates to manage banking relationships, accounts, and transactions, particularly beneficial for international businesses, streamlining operations and enhancing financial efficiency by simplifying the management of multiple banking partners globally.
Financial Performance
Alpha Group initially announced its intention to acquire the company in the first half of September, coinciding with the publication of the H1 2023 report. This report revealed a revenue of £55 million, showing a 20% increase compared to the first half of 2022. The financial services provider stated that its offerings complement those of Cobase, and the acquisition will accelerate Alpha Group’s growth rate.
Future Plans
Analyses have shown that 80% of Cobase’s current client base falls within Alpha’s target market. Morgan Tillbrook, the CEO and Founder of Alpha Group, commented,“Our strong cash generation has given us the opportunity to acquire this highly synergistic platform, and we will continue to analyse the market and review M&A opportunities within our wider capital allocation strategy.”
Alpha Group’s Operations
Leveraging advanced technology and expertise, Alpha Group provides currency risk management and alternative banking solutions to institutions and corporations in Canada, Europe, and the UK.
