FCA approves FairFX’s acquisition of CardOne

Maria Nikolova

The £15 million deal got the regulatory consent of the UK Financial Conduct Authority.

International payment services provider Fairfx Group PLC (LON:FFX) has gotten the approval of the UK Financial Conduct Authority (FCA) for the acquisition of CardOne, a company that has been providing banking platforms and money management tools since 2007.

In a filing with the London Stock Exchange earlier today, FairFX confirmed that it had obtained the regulatory consent. The company added that the acquisition, initially announced on August 8, 2017, remains conditional on, inter alia, the passing of the Resolutions at the General Meeting to be held later today.

The acquisition agreement provides for FairFX to acquire the entire issued share capital of CardOne for a maximum consideration of £15 million on a debt free/cash free basis. The consideration can be satisfied in cash or Consideration Shares at each seller’s election.

CardOne provides current accounts and a digital banking platform to personal account customers and to SMEs. FairFX’s directors believe that CardOne is one of very few providers that have a combination of regulatory compliance, technology stack and payment scheme memberships required to produce digital banking. The CardOne Group’s products and services are complemented by desktop, mobile and app account management platforms.

The Directors believe that the Acquisition of CardOne will allow FairFX to leverage CardOne Group’s infrastructure and technical capability with the aim of significantly shortening FairFX’s planned roll out of a SME business banking product, as well as growing CardOne’s own offering.

The acquisition is poised to be earnings enhancing in the first full year following its completion, with cost savings and synergies of an estimated £3.5 million over 3 years. The directors intend that cost savings and synergies are to be derived from rationalisation of back office functions, as well as simplification of the supply chain within the Enlarged Group. In addition, further opportunities are expected to be derived from cross selling of products between CardOne and FairFX’s respective customers and services.

FairFX expects to retain CardOne’s existing management, as well as its brand.

Read this next

Executive Moves

CMC Markets taps Finalto’s Julia Free to head UK compliance

CMC Markets PLC (LSE:CMCX) has onboarded Julia Free as its newest head of UK compliance as part of a broader organizational reshuffling at the UK’s biggest spread better.

Digital Assets

Ankr successfully patches hack, will reimburse victims and take actions to prevent further attacks

DeFi protocol Ankr plans to reimburse its affected users after a hacker managed to exploit a bug in its code that allowed for unlimited minting of its liquid staking token.

Industry News

ASIC cancels/suspends AFS license of AFSL Group and Quantum Funds Management

ASIC canceled the AFS license of AFSL Group because it failed to lodge statements and audit reports and it did not maintain AFCA membership. The Australian regulator suspended Quantum because it does not have the required professional indemnity insurance coverage.

Executive Moves

BidX Markets hires Shaun French as Research Analyst – Multi Asset

“We believe with his background in the Financial Markets and being based in Dubai, he will be able to provide our clients with access to outstanding research, while also being in a great location to help support our international clients base which is growing at a rapid pace’’.

Institutional FX

Nasdaq migrates US options exchange to AWS with +10% performance in round-trip latency

Nasdaq has announced the successful migration of the core trading system of Nasdaq MRX – one of its six U.S. options exchanges – to Amazon Web Services (AWS).

Institutional FX

TraditionData launches oil swaps pricing data at a critical time in OTC oil traded markets

TraditionDATA has announced the release of a new proprietary Oil Swap Model (OSM) which brings further visibility into illiquid and opaque oil markets.

Technology

TNS connects to Tel Aviv Stock Exchange (TASE) as market data vendor

“This latest exchange connection allows TNS to provide access to approved recipients, including exchange members and market data vendors. This project includes market data for TASE’s equities and increases the number of market data feeds we now offer globally.”

Executive Moves

Cowen Digital taps ex-Blockchain.com Taylor S. Cable to lead Europe and Asia operation

“Cowen Digital is a pioneer in delivering institutional grade access to the digital asset ecosystem and I am very excited to join the team at this pivotal time to grow our presence in Europe and Asia.”

Industry News

ASIC sues American Express Australia for lack of TMD on credit cards

“ASIC has now taken multiple actions under the design and distribution regime, including issuing over 20 interim stop orders. This regime turned a new page in the regulation of financial products in Australia and is intended to deliver better outcomes for consumers. It is a priority for ASIC to maximize these increased protections and see the long-term benefits of the DDO regime realized.”

<