Why these financial stocks were in limelight this week?

Summary 

  • Macquarie to buy AMP Capital's global equities and fixed income business (GEFI).
  • Cirralto has inked an agreement with Fresh Supply Co Pty Ltd to help the company to expand its worldwide payments and cashflow solutions business.
  • BNPL company Laybuy saw growth in all regions during Q1FY22.

The week ending 9 July 2021 had been quite intriguing for the investors, with RBA announcing to keep interests rate low to heal the economy, currently plagued with the delta variant cases. However, ASX stocks never cease to surprise, with many financial companies announcing business updates, rebuilding investors’ trust.

Yes, it is time again to talk about financial services providers. Be it a pure financial services firm like Macquarie and Cirralto or BNPL company like Laybuy, all are grabbing the limelight this week following their respective announcements.

Macquarie buys AMP's equities business unit for AU$185M

Global financial services group Macquarie (ASX:MQG) announced signing an agreement with AMP Ltd (ASX:AMP), a wealth management group, to buy AMP Capital's global equities and fixed income business (GEFI). The transaction is scheduled to close in the first quarter of 2022.

Source: © Utah778 | Megapixl.com

The deal includes the acquisition of fixed income, Australian listed equities, listed real estate, and infrastructure for AU$185 million, the company said in a statement on Thursday. The acquired unit will be merged with Macquarie’s public investment platform.

It is a part of AMP's previously announced strategy of increasing GEFI business through partnerships or sales. The company is also in the process of divesting its multi-asset group business to AMP Australia to create a superannuation and investment platform business.

AMP's GEFI unit

 

AMP Australia's GEFI division presently manages over AU$60 billion in assets under management (AuM) for external institutional, retail, and direct clients. The transaction consideration for GEFI is up to AU$185 million, with a cash base payment of up to AU$110 million and a cash earn-out of up to AU$75 million due after the deal's second anniversary.

 

Macquarie plans to acquire assets and teams focused on GEFI's worldwide clients and new and expanded investment capabilities in Australia and numerous overseas markets following the completion of the transaction.

Also Read: Bingo Industries (ASX:BIN) soars on takeover by Macquarie (ASX:MQG)

 

Cirralto higher on signing a deal with Fresh Supply Services

IT services management company Cirralto Ltd (ASX:CRO) has inked a five-year referral agreement with Fresh Supply Co Pty Ltd to help Cirralto expand its worldwide payments and cashflow solutions business, including cross-border payment processing and export cashflow products, according to a statement on Thursday.

Source: © Mvelishchuk | Megapixl.com

The agreement has a five-year term with an automatic one-year renewal when the five-year term expires. However, either party may end the agreement by giving the other 30 days’ notice.

Fresh Supply Co may connect joint customers to Cirralto through sales recommendations and commercial prospects under the agreement's provisions.

Fresh Supply Co's network of over 20 livestock, grain, fruit, and vegetable farmers will be able to use Cirralto's flexible payment solutions and access funding at a better rate.

Fresh Supply Co collects operational farming data from several sources and makes it accessible to the finance industry. The company’s system makes the continuous data flow visible, allowing for continuous credit risk evaluation, exposure minimisation, and automated payment triggering depending on the achievement of certain milestones or criteria.

Brisbane-headquartered company Fresh Supply was started by Dr Benjamin Lyons and David Inderias in 2017. The company operates in several countries, including Japan, USA, Australia, Latin America, and Europe.

Fresh Supply Co was a participant in the SproutX Accelerator, receiving pre-seed funding from Artesian Venture Capital and a seed round from prominent regional angel investors.

 

Cirralto signs another deal with Mastercard

Cirralto has also struck a five-year Referraldeal with Mastercard's wholly owned subsidiary Mastercard Asia/Pacific Pte Ltd, to help the company expand its global payments and cashflow solutions business, which includes cross-border payment processing and export cashflow products.

The Agreement is an extension to the previously announced Business Payments Aggregator (“BPA”) agreement with Fiserv (NASDAQ: FISV) and Mastercard, to extend its Business Payment services offering.

Mastercard may present new sales leads and business prospects to Cirralto under the Agreement's provisions and will receive a trade facilitation fee for each successfully onboarded customer. In addition, on each customer contract, Cirralto will keep at least 70% of the gross profit margin.

Also Read: Cirralto (ASX:CRO) completes acquisition of Appstablishment

Laybuy’s shares climb after posting solid results for Q1FY22

Starting the financial year with the record first-quarter results, the BNPL company Laybuy (ASX:LBY) has seen growth in all regions.

According to a company's statement, Laybuy's gross merchandise value (GMV) reached a new high of NZ$184 million (AU$172 million), or an annualised GMV of NZ$738 million (AU$691 million), up 58% over the previous year. While the UK GMV grew double from last year, it increased 107%, reaching GBP 49 million (AU$90 million).

The number of active consumers increased by 356k year-on-year to over 829k, with the number of active customers in the United Kingdom increasing by 143%.

Active merchants increased by 4.8k to over 10k while the UK stood out again, with merchants up 424% over last year and 743 new retailers signed up in the first quarter in the UK. In Australia and New Zealand, 1126 new merchants signed up during the same period.

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