OSL Group plans to acquire Banxa for approximately HK$486.7 million to build global crypto payment infrastructure

OSL Group (formerly known as BC Technology Group, HKEX stock code: 0863), a comprehensive digital asset service provider, recently announced that it intends to acquire 100% of the shares of Banxa Holdings Inc. (TSXV: BNXA), an Australian listed company, for a total consideration of approximately HK$486.7 million (approximately US$62 million). The transaction will be carried out in cash and stock, and is currently subject to regulatory approval and approval by Banxa's special general meeting of shareholders.

Financial details and transaction structure

According to disclosures, OSL will complete the acquisition through the issuance of new shares and cash payment. The specific structure has not yet been fully disclosed, but people familiar with the matter said that Banxa has included its core business growth potential and global customer network at a premium in this valuation. After the transaction is completed, Banxa will be delisted from the Toronto Venture Exchange (TSX Venture Exchange) and become a wholly-owned subsidiary of OSL.

Banxa's annual revenue in the fiscal year ending 2024 exceeded A$200 million (approximately HK$105 million) and has maintained a positive growth trend in the past two years. Its customers include many mainstream cryptocurrency trading platforms, wallet service providers and cross-border financial technology companies around the world.

Strategic background and market significance

This acquisition is another major move by OSL after completing business restructuring and brand renewal in 2024, aiming to expand its market share in the global payment and compliance infrastructure field.

Banxa is well-known for its global fiat currency deposit and withdrawal channels, compliance risk control system and localized payment gateway capabilities. It currently has a broad customer base and compliance layout in Europe, North America, Southeast Asia and Australia. Its platform supports the exchange of more than 20 fiat currencies and mainstream crypto assets, and has integrated applications on platforms such as OpenPayd, OKX and Binance.

OSL said that this acquisition will help the group enhance its compliant cross-border payment capabilities under the background of increasingly stringent supervision, while improving its technical service delivery capabilities for institutional clients and retail platforms. The group plans to integrate Banxa's services into OSL's exchange, custody and clearing and settlement systems in the future to form a full-chain closed loop of crypto financial services.

M&A signals under the trend of crypto industry integration

In recent years, with stricter supervision and rising compliance costs, the crypto financial industry has entered a new round of integration. Especially in the field of payment and deposit and withdrawal, compliance channels, license coverage and local payment integration capabilities have become the core of platform competition.

Since obtaining the No. 1 and No. 7 licenses from the Hong Kong Securities and Futures Commission in 2020, OSL has gradually built a digital asset infrastructure platform covering trading, custody, brokerage and technology output. The acquisition of Banxa marks the deepening of its "Eastward and Westward Expansion" strategy on the payment side, and also indicates that regional compliance service providers are evolving into global integrated platforms.