Financial Tech buys UK’s ACE Group

The acquisition marks Financial Technologies Group’s foray into African and European markets.

Financial Technologies, the parent company of MCX, has acquired a 90% controlling stake in the UK-based Audit Control & Expertise Global (ACE) Group for $22.5m. ACE is a global credit-support organisation providing collateral control, field audits, inspection, monitoring and financial structuring services in the commodity trade and finance sector.

“With this acquisition, Financial Technologies can now enable financial institutions to effectively monitor and control trading assets throughout the supply chain – from the raw commodity stage through to the sale of finished goods. Our services will enable institutions to secure the completion of their asset conversion cycle,” said Lamon Rutten, joint managing director of MCX. Rutten will take over as Managing Director of ACE after the acquisition is completed.

“The E3C [Enhanced Credit Commodity Control] technology of ACE is a robust technology for banks to mitigate performance risks and to secure transactions in credit finance for commodities. It will further strengthen our robust portfolio of technology IP-based solutions for global financial markets,” said Dewang Neralla, Financial Technologies’ co-founder and director.

ACE has offices in 26 countries across the world with operations in Africa, Europe, and the Far East. ACE provides collateral management and other credit-support services across 2,000 different warehouses in more than 50 countries.

Andre Soumah, Chairman of ACE, said: “The acquisition by Financial Technologies will boost ACE’s ability to give a technologically advanced credit support service to the many banks and commodity companies who are its principal clients.”

“Furthermore, by opening up opportunities to work with Financial Technologies’ major warehousing and collateral management venture, National Bulk Handling Corporation (NBHC), it gives ACE access to the huge Indian import-export trade, where collateral management services are in a stage of infancy. Financial Technologies is eminently positioned to harness the tremendous potential that lies unutilised in India, where they are already a leader in the commodity markets.”

“ACE will provide significant thrust to Financial Technologies’ vertical expansion strategy in the credit markets, particularly in the commodity sector in India and in other African and Asian economies. ACE is recognised by most international financial institutions worldwide for the quality of its collateral control services, especially for giving credit support for the financing of traditional crops, as well as petroleum products,” said Anil Choudhary, Managing Director and CEO, NBHC.

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Financial Tech buys UK’s ACE Group