Global electronic payments provider Euronet Worldwide has agreed to takeover HiFX, a UK-based payments and foreign exchange services provider, for £145m.
The acquisition will allow the company to offer an account-to-account international payment service, complementing its existing consumer-to-consumer money transfer business, Ria.
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Euronet plans to finance 25% of the acquisition through its stock and cash, which will be arranged using its existing revolving credit facility.
Euronet Worldwide chairman and CEO, Michael J Brown, said, "The strength of the combined companies will allow both HiFX and Ria to broaden their product offerings, extend their geographic reach, and improve their online platforms, providing clients with a faster, easier to use and more convenient customer experience – in turn, increasing our market share in the fastest growing portion of the international payments space."
HiFX offers exchange rates, multi-channel platform, which allows customers to transfer, track payments and manage their international payment activity online or through a representative.
In 2013, the firm transferred over $15bn for customers in the UK, Australia, New Zealand and Europe and generated revenues of $64m and $18m in adjusted EBITDA.
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By GlobalDataSubject to customary closing conditions and regulatory approvals, the transaction is expected to close in the second quarter of 2014.
The acquired entity will continue to be led by current CEO, Matthew Knowles, under the supervision of Juan Bianchi, managing director of Euronet Money Transfer Segment.
