GSTechnologies Ltd (LSE:GST) said it has signed an option to acquire a majority stake in Financial Conduct Authority-approved cross-border payments firm EasySend Ltd.
Founded in 2006 in Northern Ireland by Poles Robert Lewandowski and Gniewko Juralewicz as a way to make money transfers for their fellow countrymen back to the old country, EasySend has operated UK-wide since 2009, according to its website.
With offices now in London and Gdansk, it also serves the Ukrainian expat community and over 30 other European countries, with a current estimated yearly transaction volume of approximately €120 million, said GSTechnologies, which has agreed an option to acquire 60% of the share capital of EasySend.
Of this annual volume, 35% is derived from approximately 40,000 individual customers and 65% from approximately 350 active corporate customers.
GSTechnologies, which earlier this month raised £847,000 to accelerate its organic growth plans and for potential acquisitions, said it believes the acquisition would grow its customer base, in particular for its Angra Global payments and foreign exchange institution.
The deal would also provide access to additional technology, including EasySend's mobile terminal technology, said GSTechnologies chairman Tone Goh.
It is intended that EasySend's founders and management team will remain with the business and that the 40% minority holding will be retained by EasySend's founder.
The deal is subject to the completion of final due diligence, signing of definitive sale and purchase documentation and approval from the FCA for the change of control.
"We continue to rapidly progress the role out of our GS Money offerings and I look forward to providing further updates in due course," said Goh.