BidFX is a young, fast-growing, cloud-based, broker-neutral, foreign exchange e-trading solution for the global financial marketplace. The company was conceived and incubated within TradingScreen, Inc., a leading provider of SaaS based electronic trading services for hedge funds, mutual funds, and brokers, globally. Trading Screen approached M&A for strategic and financial adviceon the best way to carve out BidFx and raise capital for its independent growth.
M&A used its deep domain expertise in advising on financial technology transactions to help BidFX quickly develop materials that clearly communicated the strength of the company’s execution management system (“EMS”), liquidity and integration tools; risk and compliance tools, and its data and analytics tools; as well as its strong competitive positioning and the company’s impressive client base of more than 60 marquee hedge funds, asset managers, and banks in the US, UK, Europe and Asia.
At the same time, M&A helped the company develop a detailed financial plan that clearly validated its growth expectations. M&A then leveraged its extensive contacts to help the company reach out to potentially interested parties in the US, UK, Europe and Asia. After extensive review and discussion with multiple interested parties, TradingScreen concluded that their preferred option was to accept a minority investment from Singapore Exchange Limited (SGX), Asia’s biggest provider of listed FX trading and an integrated securities exchange and derivatives exchange based in Singapore. The funds provided by SGX will be used to continue enhancing the BidFX platform and add to the unit’s separate development, sales and management teams - all while rolling out product enhancements, adding liquidity providers, increasing staffing, developing strategic partnerships as well as increasing sales presence in Europe the US and Asia. As part of the transaction, SGX will gain the option to take a majority stake in BidFX.
Marlin & Associates served as exclusive strategic and financial advisor to TradingScreen and BidFX on a complex minority investment and carve-out. M&A led the preparation of detailed transaction marketing materials, conducted discussions with multiple interested parties, facilitated information exchange, advised on the negotiation and evaluation of alternative offers and helped Trading Screen and BidFX management navigate the competing desires of multiple parties.