Multicurrency payments service FairFX has agreed to acquire digital business banking firm Q Money and its associated e-money licence.
FairFX said that the acquired e-money licence will open up the possibility of it becoming an issuing bank for its cards and would allow it to internalise parts of its supply chain, ultimately reducing its cost base.
The initial consideration payable for the acquisition is £425,000, comprising £110,000 in cash and 724,136 shares in the company at an issue price of 43.50 pence apiece.
Subject to the achievement of certain performance milestones, a further consideration of up to £825,000 may be payable to Q Money over the next three years, FairFX said.
Also, Q Money founder Tony Quirke has been named CFO of FairFX as part of the acquisition.
Commenting on the deal, FairFX CEO Ian Strafford-Taylor said: "The acquisition of Q Money is an important strategic step for FairFX. The e-money licence will allow us to rationalise our supply chain, thereby reducing costs, but more importantly it widens our horizons in terms of the products and services we can provide to our customers and the speed at which we can deploy them.
“We can also internalise transactions within the FairFX ecosystem allowing FairFX customers to transact with each other in a far more efficient and cost-effective manner.”
The vendors of Q Money will retain an aggregate 20% economic interest in Q Money entitling them to 20% of any dividends paid by Q Money to the group and/or 20% of any sale proceeds of Q Money should it be sold.