As the company moves closer into corporate payments and, FairFX is planning an acquisition to aid in this expansion and augment its offerings.
The company is reportedly planning to acquire CardOne, reports Tuesday (Aug. 8) said. CardOne provides digital banking and current account solutions; FairFX will reportedly make the acquisition for $19.5 million.
Further, FairFX said it plans to raise $33.75 million in new funding, placing shares at 58 pence each (about 75 cents), as well as an offer for shareholders to subscribe for more shares at the same price, it said.
“The acquisition of CardOne is a major step for FairFX as the group looks to broaden its offering and build a digital banking services company,” said FairFX Chief Executive Ian Strafford-Taylor in a statement. “To date, FairFX has been successful in disrupting the currency payments market by offering is customers 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,” he added.
According to reports, the takeover is expected to boost earnings in the first full year after the takeover is complete; the businesses anticipate synergies and cost savings to hit $4.5 million over three years.
Last year, FairFX raised $7.5 million from investors to “push aggressively into the corporate card space,” said Strafford-Taylor at the time. The company provides financial services for both consumers and businesses, but the fundraise signaled renewed focus on corporates.
The Crystal Amber Fund provided the financing and landed a 9 percent stake in FairFX for the firm.
FairFX has positioned itself as a strategic global payments and finance service provider for consumers and businesses in the midst of Brexit, which led to increasingly fluctuating foreign exchange rates and international shifts in the financial markets.