Investing in the Future
Following a significant deal with ANZ, CMC Markets further strengthens its position as a financial technology leader
London-based CMC Markets, a leading provider of online platform technology solutions, has pulled off a substantial financial coup after a deal valued at A$25 million (US$18.8 million) with the Australia and New Zealand Banking Group (ANZ).
The transaction involved the transition of more than 500,000 clients, with total assets in excess of A$45 billion. The A$25 million consideration was funded from CMC’S existing cash resources. Independent observers have noted that the transaction is another important step in the continuing diversification of the group’s global business and in the Australian market.
The transaction marks the
end of a triumphant white label technology partnership that began in 2018. The partnership generated £39.5 million (US$54.4 million) in net trading revenue for CMC in the financial year 2021. In future, the CMC platform will supply clients with a wide range of additional benefits that are currently unavailable with ANZ. These include access to enhanced, market-leading mobile apps and complementary educational tools and resources. Once the transition is fully complete, transitioned clients will benefit from lower brokerage charges across four major international markets and the local Australian market, while CMC will have the opportunity to drive greater value from its enlarged client base.
The transaction reinforces CMC’S position as a leader in the Australian market and removes the uncertainty around the finite term of the ANZ white label partnership. The transaction is expected to take 12 to 18 months to fully transition clients.
CMC CEO Peter Cruddas, who founded the group in 1989, commented: “This transaction forms part of our longer-term goals for the company. As this new venture expands and develops, we will be able to offer more products directly to our clients. This is a further step towards the diversification of CMC’S earnings, and complements the launch of our new platform in the United Kingdom, aligning our business strategy across our core geographies.”
Over the past three decades, CMC has expanded to 13 countries around the world, dealing with more than 1 million clients, and winning more than 50 awards for its personalised customer service, technology and innovation.
In the six months to September 30, 2021, CMC has gone from strength to strength. Its net operating income for the period is expected to be approximately £126 million. A rapidly growing sector, non-leveraged operation now represents half of the business in Australia and almost one fifth of the company’s business overall.