FinTech Group sells CeFDeX 2015 to Commerzbank - all details

FinTech Group sells CeFDeX The 2015 analysis shows what this means for investors at the company Get information now & seize opportunities.

Just two weeks ago, the FinTech Group announced that the payment specialist SafeCharge is joining the company. As CEO Frank Niehage has just announced, the company has succeeded in the next coup. Commerzbank takes over the complete CFD order flow from the FinTech Group. For this purpose, the bank buys the company CeFDex, which belongs to the FinTech Group. Niehage hopes that the sale will reduce costs, but also that additional investments in the Group's IT infrastructure will be avoided.

Advantages on both sides

So far, FinTech has been able to complete its entire CFD business conducted its own market maker CeFDex. The service will be taken over by Commerzbank in the future and will thus become the dominant group in the B2B sector. The acquisition has no impact on customers of Flatex, the broker of the FinTech Group. The CFD order system is to be fully integrated into the previous Flatex account.

The cooperation between Commerzbank and FinTech should be long-term. According to reports, the term is initially seven years. The FinTech Group benefits from the sale above all from a one-off payment, which should be in the double-digit million range. The company also receives commission payments for new customers in the CFD area and aims to increase its own share price: "For our shareholders, this transaction means reduced risk combined with higher and more predictable profits," said Niehage. FinTech wants to invest the money received again, according to its own statements. What exactly the company wants to use the capital for is still unclear. Presumably, it should primarily be used to back biw Bank, which also belongs to the group, with equity.

Mario Furlan, Head of Retail CFDs at Commerzbank, is also positive about the new partnership as to whether the market power gained: "We welcome the new partnership with the FinTech Group. Our expertise in risk management and the handling of CFD transactions combined with the innovative strength and the strong retail business of the FinTech Group and its subsidiary flatex makes a lot of sense and becomes profitable for both partners "

FinTech Group sells CeFDeX 2015 to Commerzbank - all details

Deal with SafeCharge International could have a big impact

The last big coup by FinTech has not yet had a major effect on the market. The SafeCharge International Group bought a total of five percent from FinTech. The Frankfurt-based company was able to raise around 10 million euros. "The aim is to offer SafeCharge customers, among other things, comprehensive banking services, mobile payment options and debit cards," it was said at the time by the London-based company.

This was probably playing a major role here, with something new Biw Bank backed equity. It should serve as the starting point for the establishment of a "SafeCharge Bank". As a result, biw is expanding its portfolio. Until now it was almost exclusively responsible for securities transactions, in the future there will probably be a number of real payment transactions. The bank is thus avoiding a one-sided dependency on the difficult to calculate trading volume in the financial markets. The business model should work in such a way that FinTech and SafeCharge share the earnings. However, the Londoners should receive the larger share.

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Further investments planned

Even if there is no official confirmation, financial market experts assume that SafeCharge will acquire further shares in the future of the FinTech Group. From internal circles it can be heard that a threshold of 10 percent can be reached shortly. The project would be possible through a prospectus-free capital increase with exclusion of subscription rights. In the long term, it is probably planned to make SafeCharge a major strategic investor in the FinTech Group. However, this requires the approval of the next Annual General Meeting.

Niehage sees a logical and logical step in the new cooperation with Commerzbank and SafeCharge: "The transformation of the FinTech Group into the leading European provider of innovative technologies in the financial sector is in in full swing ". The CEO continues to pursue his long-term and highly ambitious price target for the FinTech Group relentlessly. The current market value of around 220 million euros is to be increased to $ 1 billion. It remains to be seen whether this will really succeed. Through the cooperation with Commerzbank, FinTech proves again how consistently and resolutely the company acts.

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FinTech Group sells CeFDeX 2015 to Commerzbank - all details

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