FairFX, a subsidiary of international payments firm Equals Group, has acquired Hermex International Limited (HermexFX) for £2 million ($2.4 million), Equals Group said in a press release on Friday (Aug. 9).
The eBanking and payments group said the acquisition would help develop the corporate segments of its business and was expected to be “immediately earnings enhancing.”
“This acquisition further demonstrates the ambition of the Group to be a dominant force in the payments market. Utilizing our proprietary technology and outstanding operations teams we are able to absorb businesses like HermexFX extremely efficiently,” said Equals Group CEO Ian Strafford-Taylor. “The acquisition also shows our commitment to pursuing our strategy of achieving cost efficiencies through scale. We are delighted to have attracted such a high quality, service-led business with an excellent client base, and we welcome the team from HermexFX to the Equals family.”
Part of the FXPro Group, HermexFX offers international payment services to a predominantly corporate client base. As of the end of June, HermexFX generated revenues of £1.8mln and would have contributed £600,000 toward pre-tax profits.
The founder and current CEO of HermexFX, Kyrillos Kyriacou, will join the Equals Group as an employee. He has agreed to subscription shares valued at £1 million, in exchange for 851,063 new ordinary shares at an issue price of £ 1.175 per share.
This acquisition is part of Equals Group’s strategy to expand its corporate segment through existing sales channels and offer clients an expanded range of products. The move is also in line with the company’s goal to consolidate smaller, attractive market participants and gain value from increasing economies of scale.
Equals Group recently formed a global relationship with Citigroup that will significantly increase the number of currencies it offers clients, CTMfile reported in July. The agreement is expected to result in faster settlement and reduced transaction costs for Equals Group, with Citi Commercial Bank offering local settlement and clearance capabilities for payments in over 90 countries.