FairFX Group PLC has announced its proposed acquisition of CardOne in a bid to secure faster growth in the business sector and build a digital banking services company.
The proposed acquisition of CardOne – a group that provides current accounts and a digital banking platform for both personal account customers and SMEs – is for a consideration of £15m together with a conditional placing to raise approximately £25m by the issue of shares.
In total, the online international payment services provider plans to undertake the issue and allotment of more than 46 million new ordinary shares at the issue price of 58 pence per ordinary share.
In order to provide shareholders who haven’t taken part in the placing with an opportunity to participate in the proposed issue of new ordinary shares, FairFX will provide all qualifying shareholders with the opportunity to subscribe at the issue price for an aggregate of up to 1,730,669 open offer shares to raise up to approximately £1m.
• Significantly oversubscribed conditional placing with new and existing institutional investors
• £22m raised from the general placing (before expenses)
• £4.7m raised from the VCT/EIS Placing (before expenses)
FairFX will use the majority of net general placing proceeds to fund the acquisition of CardOne.
“The acquisition of CardOne is a major step forward for FairFX as the group looks to broaden its offering and build a digital banking services company,” said Ian Strafford-Taylor, CEO of FairFX.
“To date, FairFX has been successful in disrupting the currency payments market by offering its customers a better service and value.
“CardOne has done much the same in the banking space, and together we believe we can provide a product offering which will deliver greater services and faster growth.”
FairFX has developed a cloud-¬based peer-¬to-¬peer payments platform that allows personal and business customers to make easy, low-¬cost multi-¬currency payments in a range of currencies via one integrated system.
The platform facilitates payments either direct to bank accounts or via its prepaid cards at over 35 million merchants and over one million ATMs worldwide.
SIGN UP TO OUR NEWSLETTER TO RECEIVE MORE NEWS LIKE THIS STORY
Masthaven teams up with Intrinsic Financial Services
Masthaven has announced a new partnership with Intrinsic Financial Services as the bank looks to enable more brokers to access its range of residential mortgages.
Cambridge & Counties refinances Oxfordshire nursery
Cambridge & Counties has refinanced an Oxfordshire nursery, which is creating 50% more places for local children.
How important are brokers in the specialist banking market?
Brokers are an important channel for newly launched banks, a number of industry professionals have claimed.
BFC Bank enters UK market
BFC Bank has launched into the UK banking market offering financial services to UK SMEs.
Liam Fox launches GREAT Innovation in Action Awards
International trade secretary Liam Fox has launched the GREAT Innovation in Action Awards to find the best partnerships between UK and Asia-Pacific companies.
Teachers Building Society names new board of directors chair
Teachers Building Society has named Julie Nicholson as the new chair of its board of directors.
Church of England introduces contactless payments
The Church of England has introduced contactless, virtual terminal and SMS mobile payments to over 16,000 churches, cathedrals and religious sites across England.
FIBA workshops to feature live deal room
The Financial Intermediary & Broker Association (FIBA) has announced that its upcoming regional workshops will give brokers the chance to interact with partner lenders in a live deal room.
Metro Bank to enter Scottish mortgage market
Metro Bank has announced that from 5th April it will be expanding its mortgage business into Scotland.
Do challenger banks need to collaborate on Open Banking?
Collaboration between challenger banks on Open Banking could be a powerful message to consumers and the established players, according to an expert at a recent event.