Marex Group PLC has announced its agreement to acquire Aarna Capital Limited, a move designed to strengthen its presence in the Middle East and bolster its clearing business.
Aarna Capital, headquartered in Abu Dhabi, provides specialized services in clearing, execution, and customized risk management solutions. Its expertise spans several markets, including energy, base, and ferrous metals, as well as financial sectors such as equities, fixed income, and foreign exchange.
Strategic Acquisition Brings New Clients and Opportunities
With this acquisition, Marex will not only enhance its capabilities in a new market but also gain access to approximately 180 local clients. These clients range from institutional investors and family offices to corporate clients, all supported by Aarna Capital’s experienced team.
Currently, Marex has around 60 employees in Dubai, and this acquisition will complement its existing operations in the region.
“This acquisition aligns with our financial criteria and offers an attractive valuation, representing three to four times the expected profit after tax,” said Ian Lowitt, CEO of Marex. “We also retain capital from our IPO, allowing us to continue investing in future growth and diversifying our business.”
Marex has a track record of strategic acquisitions. Last year, it acquired Cowen’s prime brokerage and outsourced trading business, adding 160 professionals across eight international offices and a range of trading and reporting technologies. The business, now part of Marex Capital Markets, continues to be led by industry veterans Jack Seibald and Mike Rosen, who have overseen its growth since the mid-1990s.
Projected Financial Growth
The Aarna Capital deal is expected to contribute significantly to Marex’s financial performance, with projected earnings growth beginning in the fiscal year ending December 31, 2025. The transaction is anticipated to add approximately five percent to Marex’s profit after tax, thanks to synergies from Aarna Capital’s integration. These include cost savings from internal clearing fees and increased net interest income through Marex’s existing financing relationships.
The acquisition is expected to close by late 2024, pending regulatory approval
“Our clients will continue to benefit from the expertise of our team while gaining access to Marex’s broader product and service offerings,” said Dmitry Nedvetsky, Senior Executive Officer at Aarna Capital. “Additionally, we look forward to introducing Marex’s clients to our services in Abu Dhabi. The Middle East is a key growth market for us, and this acquisition allows Marex to expand its global footprint and enhance the services we offer to both new and existing clients.”