Brokerage group Saxo Bank said on Monday that it has sold a majority stake in its Australian entity to South African firm DMA.

The terms of the deal were not disclosed but will see DMA taking an 80.1% stake in the company, with Saxo Bank retaining the remaining 19.9%.

DMA is a South African firm that focuses primarily on providing services to wealth managers. It does business in Africa and several European countries, including the UK.

Previously the company was operated by Saxo Bank but the firm underwent a management buyout, backed by banking group Sasafin, in 2018. The company appears to still operate via a Saxo white label today.

In a statement, Saxo Bank said that the new entity will continue to use its technology and platform, although there is a possibility that the brand name will change down the line. There are also no planned changes to local personnel.

The new entity will focus on the wealth management sector in Australia. DMA tries to sell into this segment by touting its superior technology, which the company claims helps streamline compliance procedures and offers a better user interface for portfolio management.

Saxo Bank’s decision to sell fits with a strategic plan it announced in the middle of last year. This ‘strategic review’ was for its Hong Kong, Japan, and Australian entities.

The implication of that review was that the firm was looking to sell its entities in those countries but with partners who will continue to use Saxo’s technology.

The Danish broker has been up for sale for several years now and its plausible this activity is related to making the company a more attractive proposition to a potential buyer.

Saxo’s Australian entity made AUD 5m ($3.1m) in 2023, the last set of full year accounts that the company has published.