Equals (AIM:EQLS) announced its decision on Thursday to acquire assets from the business of Effective FX, thus bolstering its grip on further into the B2B foreign exchange (forex) market.
The deal was inked for a total of £1.575 million (around $2.05 million), and the amount will be paid in subsequent instalments from Equals’ existing cash resources.
Effective FX’s international payments business has more than 200 corporate clients, and will acquire this entire client book.
“This acquisition highlights a number of key strengths of Equals in the B2B international payments arena,” Equals CEO, Ian Strafford-Taylor said.
“Firstly, we remain open to M&A opportunities and can structure deals to suit both parties whilst concurrently protecting our cash position. Secondly, it demonstrates the multiple ways we can acquire volumes and revenues, directly via sales and marketing, indirectly via our outstanding Equals Connect B2B2B model.”
Focusing on B2B Clients
The announcement detailed that for the 12 months, ending in August, the Effective FX book generated an EBITDA of approximately £0.5 million with a total asset of around £0.5 million.
On the contrary, Equals took a massive hit in its business due to the ongoing pandemic, reporting an of £3.16 million in the first half of 2020. The company was profitable in the similar period of the previous year with £445,000.
The acquisition came as the company is shifting its focus to its B2B verticles from its vast network of B2C services.
Effective FX is wholly owned by its CEO Amir Mehrad, who will also join Equals as a part of the acquisition deal.
“The excellence of our payments infrastructure and technology means that Equals is a business that attracts talented operators such as Amir who clearly identify the significant benefits of having a much broader range of products to sell,” Strafford-Taylor added.
Be First to Comment