London fintech firm acquires currency exchange company for around £3m
A London cloud-based provider of international payment, currency risk management and electronic account services has announced the acquisition of Capital Currencies for up to £3m.
This reflects delivery on Cornerstone’s stated strategy of growing via acquisition.
Founded in 2004 and based in Tunbridge Wells, Capital Currencies specialises in the provision of currency exchange and international payments. It is authorised and regulated by the FCA as an authorised payment institution.
Capital Currencies is a strong strategic fit for Cornerstone as its client base is primarily UK corporates, with a particular focus on larger SMEs, and over 90 per cent of its revenue is generated by clients that it services directly.
The acquisition is anticipated to be earnings accretive from the current financial year and expand Cornerstone’s presence in its core market.
By bringing Capital Currencies’ clients onto Cornerstone’s technology platform, Cornerstone expects to benefit from the rationalisation of payments to banking partners across the combined organisation as well as recognise other synergistic savings, such as in compliance costs and overheads.
Cornerstone also announces a proposed fundraising of £0.85m to part-fund the acquisition and for working capital purposes.
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