Al Ansari Financial Services Acquires BFC Group Holdings for USD 200 Million

Al Ansari Financial Services PJSC (AAFS), a leading integrated financial services group in the UAE, has signed a Sales and Purchase Agreement (SPA) to acquire 100% of BFC Group Holdings W.L.L. (BFCGH), a prominent foreign exchange and remittance group based in Bahrain, for a total of USD 200 million (AED 735 million). The acquisition is part of AAFS's strategy to expand its geographic footprint and service portfolio, aiming for sustainable growth.

With this acquisition, AAFS will significantly expand its branch network, becoming the largest provider of foreign exchange and remittance services in the Gulf Cooperation Council (GCC) region. The combined entity will operate over 410 branches across the UAE, Bahrain, Kuwait, and India, supported by a workforce of approximately 6,000 employees—a 25% increase from AAFS's current workforce.

The acquisition aligns with AAFS's strategic growth pillars of expanding its geographic presence, increasing its physical branch network, and enhancing its service offerings. The integration of BFCGH, recognized for its significant market share in key GCC and Asian markets, strengthens AAFS's market leadership and opens new avenues for growth, further solidifying its commitment to delivering long-term value to shareholders.

The consolidated revenues of AAFS and BFCGH for the fiscal year 2023 reached approximately USD 385 million (AED 1.4 billion), marking a 22% increase compared to AAFS's reported revenue. AAFS plans to leverage operating and cost synergies post-acquisition to enhance profitability and efficiency.

The transaction, expected to close by Q1 2025, is subject to regulatory approvals and other conditions agreed upon by both parties. AAFS intends to secure financing under customary market terms to complete the acquisition.

Rashed Ali Al Ansari, Group CEO of Al Ansari Financial Services PJSC, commented, "This strategic acquisition marks a significant milestone in our growth journey, positioning us as the leading foreign exchange and remittance service provider in the Gulf region. By expanding our customer base and service reach across the GCC and India, we aim to provide a broader audience with our comprehensive solutions. This move supports our strategy of diversification and market expansion, delivering sustainable value and optimal returns for our shareholders."

Ebrahim Nonoo, Managing Director and CEO of BFCGH, added, "We are excited about the acquisition by Al Ansari Financial Services PJSC. This strategic move underscores the value and potential of our organization, paving the way for new growth and innovation opportunities. Our dedicated team has built a strong foundation, and we are confident that AAFS will continue to advance our mission, ensuring the best outcomes for our clients and stakeholders."

BFCGH, established in 1917, was the first foreign exchange company and financial services institution in Bahrain and the GCC, holding a leading position in the region's foreign exchange and money transfer services.