Private equity firm Equistone Partners Europe has agreed to acquire a majority stake in British cross-border payment service company Small World Financial Services.
Founded by CEO Nick Day in 2005, Small World currently has over 6,000 third-party send-side agents and 80 branches in 16 countries. At present, the company has a workforce of 680.
Under the agreement, Small World investors, including FPE Capital and MMC Ventures, will offload their stakes, while the company’s management will reinvest for taking a minority stake.
Commenting on the transaction, Day said: “Our partnership with Equistone will help accelerate the achievement of our goals and provide the funding to drive growth.”
The deal, whose financial terms were not disclosed, is subject to regulatory approvals.
Equistone partner Andrew Backen said: “Demand for cross-border payments is increasing due to macro-demographic trends, and Small World’s high-quality customer proposition and scalable business model position it to achieve further organic and acquisitive growth.
“Equistone has a successful track record of investing in financial services businesses in the UK and internationally, and we are excited about working with Nick and his team to support the Company’s continued development.”