FairFX acquires City Forex for £6 million - The Industry Spread

Ricardo Esteves

Ricardo Esteves has seen business and economics through many lenses. He joined the Financial Services Industry in 2009, and has been a financial journalist since 2011. He holds a degree in Business Administration and has experience producing real-time news, from both buy-side and sell-side, as well as for retail traders, brokers and service providers. Esteves' work has appeared in a variety of online publications including FX Street and FinanceFeeds.

City Forex

FairFX acquires City Forex for £6 million

February 22, 2018

FairFXFairFX, a multicurrency payments and banking service, announced that it has acquired City Forex for £6 million payable in cash, to be paid from existing FairFX cash resources, with the approval of the UK Financial Conduct Authority.

The initial consideration for the acquisition is £5.25 million with the remaining consideration of £0.75 million paid nine months after completion. The acquisition of the entire issued ordinary share capital of City Forex should enhance earnings for FairFX, increase economies of scale and add product innovation.

“The acquisition of City Forex is a key milestone in the evolution of FairFX and will immediately enhance the Group’s earnings. City Forex is a long-standing partner of FairFX, we know the Company and its people well and we are delighted to welcome them into the FairFX Group”, said Ian Strafford-Taylor, Chief Executive Officer, at FairFX, “This transaction fits perfectly with our stated strategy as it increases our scale, rationalizes our supply chain and brings their innovative system within the Group.”

Ian Strafford-Taylor, Chief Executive Officer, at FairFX
Ian Strafford-Taylor, Chief Executive Officer, at FairFX

City Forex offers International Payments – with approximately 2,000 business and 8,000 private client customers – and Travel Currency, which are both accessible to both business and consumer segments through its proprietary platform and its three central London based branches respectively. The Travel Currency division fulfills almost 200,000 currency orders per annum across a number of supply verticals, including walk-in retail trade, the servicing of employee discount schemes, corporate accounts and supply partnerships such as that undertaken with FairFX.

It is City Forex that provides the operations for FairFX’s Travel Currency service since 2007. City Forex’s large and growing International Payments business is expected to provide economies of scale from banking partners when combined with existing FairFX volumes.

City Forex’s proprietary system processes both the Travel Currency and International Payments businesses with a high degree of automation. 40% of City Forex business is through the customer-facing portal offering “self-serve” international payments to corporates at bespoke spreads. The end-to-end nature of the platform, covering customer interface all the way through to automated settlement, represents a significant jump forward in functionality and efficiency for the Group. Cross-selling FairFX products to City Forex customers will be a top priority, particularly for the FairFX Corporate Expense Card and Platform.

City Forex made revenue of £4.4 million in Q3 2017 (YoY) from turn-over of £570 million which generated an EBITDA of £0.7 million and a PBT of £0.3 million. The company had assets, excluding client cash and grossed up debtors and creditors, of £4.1 million.

Login To MyTis Comment Or Register to MyTIS

Leave a Reply

avatar
  Subscribe  
Notify of

Newsletter

Register now to receive the latest news and information for global trading industry.

Latest Articles

sino-us trade talks

Asian Stocks Higher, Gold Retreat on Trade Talks Optimism

Asian stock indices finished higher as trade talks optimism returns after President Trump said that trade talks are progressing and China and the USA are close in signing a phase …