(Alliance News) - Equals Group PLC on Tuesday said it has purchased Casco Financial Services Ltd for an initial cash consideration of GBP1.7 million, with a potential addition of GBP2.0 million, depending on future performance.
Casco is a UK-based payment services provider.
For the 12 months to the end of October, Casco generated revenue of GBP3.3 million and pretax profit of GBP200,000.
Equals said it expects to transfer Casco's over 1,000 corporate customers to its International Payments division, which is expected to provide cross-selling opportunities.
Meanwhile, Casco's Infrastructure Services business, which represents a new product and revenue stream for Equals, will be rebranded as Equals Connect and operate as a separate subsidiary.
"We have been planning to enter the service provision sector for some time in order to leverage the group's resources in a parallel market, where all of the same attributes are required as our core international payments division. This transaction enables us to enter with a proven provider and penetrate this growing market at pace," said Chief Executive Ian Strafford-Taylor.
Craig Granger, Kane Granger and Jack Bryant, the current senior management team of Casco, have joined Equals as employees, it said. They will retain an aggregate 48% interest in Casco, entitling them to share any dividends paid and any sale proceeds of Casco, should it be sold.
Equals shares were trading 0.2% lower in London on Tuesday midday at 84.60 pence each.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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Equals Gp (EQLS)