FairFx Group PLC has acquired international payments and travel currency services provider City Forex Limited, for a consideration of £6m.
The company said that the consideration will come from its existing cash resources, with an initial £5.25m 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.
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 Strafford-Taylor, chief executive officer, commented: “The acquisition of City Forex is a key milestone in the evolution of FairFX and will immediately enhance the Group’s earnings. City Forex is a long-standing partner of FairFX, we know the Company and its people well and we are delighted to welcome them into the FairFX Group. This transaction fits perfectly with our stated strategy as it increases our scale, rationalises our supply chain and brings their innovative system within the Group.”