Specialist foreign exchange provider Moneycorp has been acquired by Bridgepoint in a transaction with an enterprise value of £212 million from funds advised by SOF Investments.
Moneycorp is one of the largest specialist players in the market targeting customers through a multi-channel offering, including a fully integrated online payments and telephone platform serving both SME corporate and private customers. In 2013 it recorded gross income of £97.2m (2012: £65.2m) and handled over £10 billion of currency trades. In 2013 it also acquired Thomas Cook's corporate foreign exchange business.
The business has built a powerful origination engine through a combination of telephone based sales people, partnership referral network and a strong retail presence at strategic travel hubs such as Heathrow and Gatwick. It currently serves predominantly UK based SMEs and UK high net worth individuals and operates a retail bureau de change business focussed on London and the South East with 10 stores and 61 airport locations. The company is also beginning to open up business internationally.
Mark Horgan, Moneycorp CEO, said: "We are setting out to make Moneycorp the first choice in international payments and foreign exchange in the UK and now also have the opportunity to realise our broader ambitions and to grow internationally with Bridgepoint."
Bridgepoint partner Stephen Green commented: "The FX market for SMEs is changing and offers much to go for with banks providing poor value and service leading customers to shift to specialist providers. Moneycorp is an exciting opportunity to back a talented management team with a fast growing UK business and significant international development potential."
Lindsey McMurray of SOF Investments added: "The management team has built upon the long history of strong service culture embedded within the organisation to introduce innovation in product development and delivery, underpinned by the highest standards of regulation and compliance to create an exciting platform for future growth."
The UK international payments market is expected to grow by 11 % p.a. as customers continue to switch away from banks and awareness of and trust in specialist providers increases. Banks increasingly view the SME and private individual market as non-core as they focus on core lending products or FX and treasury for large corporates.
Advisers involved in this transaction included:
For Bridgepoint - DC Advisory (M&A), Deloitte (Financial), Shearman & Sterling LLP (Legal), Oliver Wyman (Commercial), Marsh (Insurance)
For SOF Investments - Canaccord (M&A), KPMG (Financial), Slaughter and May (Legal), BCG (Commercial), Dean Street (Management Financial), Charles Russell (Management Legal)
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