Search Share Prices
FairFX acquires partner City Forex for £6m and quick earnings boost
FairFX has tightened its grasp on the travel currency industry with the £6m purchase of City Forex on Wednesday.
The payment for the acquisition of City Forex, which has been a partner of FairFX since 2007, will come from the AIM companys' existing cash resources, with £5.25m to be paid initially, followed by £0.75m to be paid nine months after completion.
Ian Strafford-Taylor, chief executive of FairFX, said: "The acquisition of City Forex is a key milestone in the evolution of FairFX and will immediately enhance the group's earnings."
A company statement said that FairFX expects the acquisition to be immediately earnings enhancing, with City Forex fulfilling 200,000 orders per annum.
The fusing of the two companies will also mean that FairFX will control the entire supply chain for its travel currency service.
"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," said Strafford-Taylor.
FairFX is a London based company which provides international payments and currency to customers through technology, rather than through bureaus and kiosks. City Forex's brings additional customers in international payments and travel currency, which it sells from its proprietary online platform and its three central London based branches.
As of 0840 GMT, FairFX's shares were up 3.6% at 72p.