Global all-in-one software solutions firm for financial advisers and wealth managers DMA has entered into an agreement to acquire a majority stake in multi-asset investing specialist Saxo Australia.
The transaction launches DMA’s offering into the Australian marketplace and as part of the change in shareholding, Saxo Australia will continue to leverage Saxo Bank’s platform and trading technology, helping to ensure business continuity and minimal disruption for clients.
The transaction is expected to close in H2 2025.
Through the change in shareholding, the Johannesburg-headquartered DMA will assume (subject to regulatory approvals) 80.1% ownership of the Australian business, while Saxo Bank will retain a 19.9% equity stake.
The sale comes after Saxo Bank in June 2024 announced a review of strategic opportunities in the Asia Pacific, seeking to accelerate its growth in the region
The new name and brand of the business will be established following a transitional period, during which the business will continue to operate as Saxo Australia. The business will also retain Saxo Australia’s staff, under the leadership of CEO Adam Smith, while looking to bolster its Australia-based client service capacity.
Smith says Saxo will ensure a smooth transition and aim to enhance the offerings and services provided.
“The clients of Saxo Australia will notice no disruption in service, product range, or platform access. We are very pleased to partner up with DMA and believe that this will be a game changer for Australian clients,” he adds.
The change in shareholding means Saxo Australia’s investment product range, high-touch service, and brokerage will be complemented and strengthened by DMA’s business-to-business knowhow, global advisor offering, and focus on growth.
Once launched, DMA’s proprietary software-as-a-service (SaaS) will enable Australian institutional investors such as financial advisors and asset and fund managers to connect front, middle, and back-office functions under a single solution, from clearing and settlement to execution and custody.
DMA Chief Executive Officer Richard North believes DMA’s platform offering will bring tangible benefits to Australian financial advisers and wealth managers, while the business will continue to focus on delivering high-touch, high-quality service for self-directed retail clients.
“It’ll be the best of Saxo and the best of DMA and we think that adds up to the marketplace’s best choice for investors across the entire lifecycle,” says North.
DMA is a technology and financial services company based in South Africa. Together, the DMA group’s entities manage and administer more than €15 billion ($24.67 billion) in assets and services through its integrated software as a service (SaaS).
More than 160 wealth managers and advisor networks across Africa, Europe, and the UK currently use DMA to access global markets, all from a single platform.
Saxo Bank CEO and founder Kim Fournais (pictured above) says the deal will support financial services firms to reduce back-office cost and complexity, enhance their client-facing service, and sustainably grow their business.
Fournais says with this agreement with DMA, Saxo Bank leverages its core strength – providing a scalable and multiasset trading infrastructure with our award-winning platforms.
DMA’s proprietary SaaS is designed to simplify the process of asset management so institutional investors can focus on what matters: growing wealth. Its modular technologies work as one to connect front, middle, and back office, allowing regulated entities to grow AUM and reduce operating costs.
Saxo has operated in Australia since 2012 and is a licensed subsidiary regulated by ASIC.
Write to Adam Orlando at Mining.com.au
Images: Saxo
