FairFx Group PLC (LON:FFX) has acquired international payments and travel currency services provider City Forex Limited, for a consideration of £6mln, payable in cash.
The AIM-listed company said that the consideration will come from its existing cash resources, with an initial £5.25mln to be paid, and the balance of £0.75mln due nine months after completion.
The electronic banking and international payments group said the acquisition of City Forex is expected to be immediately earnings enhancing.
It added that the deal fits with company’s stated core growth themes, namely extracting increasing economies of scale while adding product innovation.
City Forex has been a partner of FairFX since 2007 and provides the operations for its Travel Currency service.
FairFX said that one of the benefits of combining the two companies is that the enlarged group will control the entire supply chain for the Travel Currency service.
Ian Straffod-Taylor, FairFX's chief executive officer said: “This transaction fits perfectly with our strategy as it increases our scale, rationalises our supply chain and brings their innovative system within the Group.”
In early trading, FairFX shares were 0.7% higher at 70p.