LONDON (Alliance News) - Currency exchange provider FairFX Group PLC on Thursday said it has agreed to acquire Q Money Ltd and its associated e-money licence in cash and shares.
FairFX said the e-money licence it will acquire will open up the possibility of it becoming an issuing bank for its cards and would allow it to internalise parts of its supply chain, ultimately reducing its cost base.
In addition, FairFX said the e-money licence will allow it to create a UK digital banking product and also provide the chance to capitalise on plans in the UK to open up its payments infrastructure.
As part of the acquisition, Q Money founder Tony Quirke will become chief financial officer of FairFX.
FairFX will pay GBP425,000 in cash initially to buy Q Money, comprising GBP110,000 in cash and 724,136 shares in the company at an issue price of 43.50 pence apiece.
A further consideration of GBP825,000 will be payable to Q Money over the three years following completion, satisfied in FairFX shares.
"The acquisition of Q Money is an important strategic step for FairFX. The e-money licence will allow us to rationalise our supply chain, thereby reducing costs, but more importantly it widens our horizons in terms of the products and services we can provide to our customers and the speed at which we can deploy them," said Ian Strafford-Taylor, FairFX's chief executive.
"We can also internalise transactions within the FairFX ecosystem allowing FairFX customers to transact with each other in a far more efficient and cost-effective manner," he added.
FairFX shares were up 10% to 48.00 pence on Thursday.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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