Growth By Acquisition Strategy Has Worked Well For This Micro-Cap

By: Tomas Ronolski - AllPennyStocks.com News

Thursday, January 23, 2025

Growth through acquisition allows businesses to expand rapidly by gaining access to established customer bases, new markets, and valuable assets such as intellectual property, technology, or skilled talent.

It can also help a company achieve economies of scale, reduce competition by acquiring rivals, and diversify revenue streams to minimize risk. This growth strategy also provides opportunities to strengthen market position, improve financial performance, and leverage synergies by streamlining operations and eliminating redundancies.

By acquiring businesses with strong brands, profitable operations, or innovative solutions, companies can accelerate growth while saving time and resources compared to organic expansion.

One company that appears to mastered this financial road map is FDCTech, Inc. (OTCQB: FDCT). FDCT is a fintech-driven company specializing in acquiring and integrating small—to mid-size legacy financial services firms. Today, the company announced the signing of a Letter of Intent (LOI) to acquire Alchemy Global Ltd., a Seychelles-registered securities dealer authorized by the Financial Services Authority. According to the company, the acquisition is a strategic move aimed at establishing a significant presence in the Middle Eastern and Asian markets, with the deal expected to close by the third quarter of 2025, subject to customary closing conditions and regulatory approvals.

Details of the financial transaction stipulate that FDC intends to purchase 100% of Alchemy Global's shares, with the purchase price comprising Own Funds Capital and a premium of $2,000,000 minus the Own Funds Capital.

For the nine months ending September 30, 2024, Alchemy Global reported revenues exceeding $4.00 million, a net income of $2.2 million, net assets of $3.88 million, client funds of over $6.7 million, and a working capital surplus of $3.80 million.

In late-morning trading, shares of FDCT are up 0.37% at $0.0805, but were up as high as $0.1099 earlier in the day.

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