Equals Buys Effective FX’s International Payments Business
- The deal was closed for £1.575 million.
Equals (AIM:EQLS) announced its decision on Thursday to acquire assets from the international payments business of Effective FX, thus bolstering its grip on further into the B2B foreign exchange (Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term) 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 Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term business has more than 200 corporate clients, and Equals 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 after-tax loss 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.
Equals (AIM:EQLS) announced its decision on Thursday to acquire assets from the international payments business of Effective FX, thus bolstering its grip on further into the B2B foreign exchange (Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term) 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 Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term business has more than 200 corporate clients, and Equals 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 after-tax loss 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.