Alpha Group to acquire 85% stake in Cobase in multibank connectivity sector

Alpha Group International plc has entered into a conditional agreement to acquire approximately 85% of Financial Transaction Services B.V., trading as Cobase. Pending approval by the Dutch Central Bank, the initial cash consideration for the acquisition stands at €9.4m (£8.0m), with the remaining stake to be performance-based between 2025 and 2028.

What Cobase Offers

Founded in 2017, Cobase is a cloud-based bank connectivity platform. It centralizes corporate banking relationships and transactions through a single interface. This significantly enhances operational and financial efficiencies, particularly for international businesses that deal with multiple banks across the globe.

The Problem Cobase Solves

Traditionally, corporations have had to navigate multiple platforms to manage their banking relationships, impacting efficiency and transparency in payments, cash management, and treasury functions. Cobase offers a simplified solution through its platform and off-the-shelf ERP connections, such as Oracle Netsuite, Microsoft Dynamics, and SAP S4/HANA.

Cobase’s Unique Market Position

Cobase’s unique proposition allows companies to bypass the complexities of enterprise-grade Treasury Management Systems (“TMSs”). The company currently employs around 30 individuals and is headquartered in Amsterdam. It generates approximately £2m per annum from SaaS subscription fees and boasts over 500 bank connections across 80 countries.

How Alpha and Cobase Complement Each Other

Both Alpha and Cobase have highly complementary offerings. 80% of Cobase’s existing client base is within Alpha’s target market, highlighting the acquisition’s synergistic potential. Cobase’s proprietary technology will accelerate Alpha’s digital capabilities, allowing them to offer holistic treasury services around their core FX risk management proposition.

Morgan Tillbrook, CEO and founder of Alpha Group, said: “Whilst we have had plenty of opportunities to make acquisitions and external investments, we have very high expectations for ourselves and our investors. The fact that after more than six years as a public company and after considering numerous acquisition opportunities, this is our first investment of this kind is ultimately a testament to the company that Cobase have built, and the strength of the alignment the company has with our business.”

Jorge Schafraad, CEO and founder of Cobase, said: “We are delighted to join the Alpha Group as they are a client-driven and innovative company in a field adjacent and closely aligned to ours. They have clearly achieved a leading position in their market and are as such an enviable partner, and we are convinced that this will unlock exciting new opportunities for our customers, partners and team going forward.”

Deal’s Timeline

Subject to approval by the Dutch Central Bank, the transaction is set to conclude with a performance-based earn-out between 2025 and 2028.