Exxe Group Adds New High Value, High Growth FinTech Acquisition

Product on track to generate over $100M in yearly transactions by 2022

NEW YORK, June 05, 2020 (GLOBE NEWSWIRE) -- Exxe Group, Inc. (OTC PINK: AXXA), a diversified company focused on synergistic acquisitions in digital platforms, financial services, real estate, and agribusiness, announced today that it has acquired a controlling interest in a fast-growing, UK-based fintech solutions provider that specializes in money-management platforms processing millions of transactions in alternative finance, merchant services, and investment services.  The core product is FX Platform, which is projected to generate over $ 100 million in yearly transactions within 24 months and nearly $ 2,500,000 in EBIT.  The deal is currently valued at a discounted price of $ 7.2 million. The total purchase consists of $1.8 in cash delivered on installment basis by 2022, preferred shares, assumption debt and personal guarantees of Exxe Group officers. Under current plan management intends to incubate the platform for 24 months, complete a PCAOB Audit and spin-off the unit delivering unparalleled value to Exxe Group’s shareholders as a result.

Background

According to a January 2020 industry report issued by Adroit Market Research, the global financial technology market (FinTech) is slated to reach nearly 500 billion dollars by 2025.  As noted in the report, fintech companies integrate various technologies such as AI, Blockchain, Wallets, Forex (FX) trading, etc. into financial services to make them faster, safer, and more efficient.  Europe appears to be ahead of most regional economies, which is why Exxe Group targeted the acquisition of a UK-based EU focused fintech company that is in the early stages of its growth phase.  Adroit points out that the European market is ahead of other regions due to the strategic opportunity bolstered by the EU’s PSD2 payment directive (Payment Service Directive). PSD2 enables third parties to create new financial services through open APIs to customers' bank accounts, making app integration and execution seamless. 

The evolution of fintech’s capabilities has fostered a boom in the FX trading industry. The introduction of new fintech platforms allowed the migration  of FX trading dominated by large banking institutions to those adopted by smaller retail customers who use it as an investment or trading instrument. The adoption and broader usage have accelerated with increased demand for Forex products for savings, trading and investment, as well as hedging and risk management at the retail level.