OSTC, the global derivatives trading and education business, today announced the acquisition of industry-leading financial training and education specialist FSTP, in a stock-and-cash transaction, with some of the consideration subject to future financial performance.
The acquisition further strengthens OSTC’s focus on the learning and development sector, materially expanding its current financial education footprint into the compliance, regulation and governance space in which FSTP is a leading UK-based provider.
The acquisition is accretive to OSTC’s earnings and accelerates the growth, quality, and diversification of the OSTC revenue base, in line with the organisation’s strategic ambitions. FSTP will be integrated into OSTC’s ZISHI education subsidiary, creating expected 2021 proforma revenues in excess of 7.5% of Group revenue, with 20% CAGR revenue projected over 3-years. The addition of FSTP will see OSTC employing 37 people in total across its education offering, servicing over 140 clients across the world.
Following the purchase of Volcube in Q4 2020 and BG Consulting in Q1 2021, this is the third acquisition for OSTC in a large and growing addressable market, with the global education and training industry expected to reach $7.3Tn in total expenditure by 2025.
Lee Hodgkinson, Group CEO of OSTC, commented: “The acquisition of FSTP is the third in a series of measured and proactive acquisitions designed to accelerate growth in OSTC’s offering within the EdTech space. The clear strategic benefits of building scope and scale in our service offering, mean we can now meet a wider range of our clients’ financial training needs. Looking ahead, M&A will remain key to building non-transaction revenues for cyclicality protection and higher valuation multiples and we will continue to look at select cost-effective stand-alone acquisition opportunities which fit our disciplined acquisition criteria.”
Julia Kirkland, Managing Director of FSTP commented: “We are delighted to have been recognised by OSTC as adding value to the already impressive educational offering. The combined strength of the group allows us to offer our clients additional support in a way that continues to reflect our values. We are excited by the prospect of working with our new colleagues and extending the reach and capacity of the OSTC group.”
