Corporate payments firm Corpay has agreed to acquire British counterpart Alpha Group for $2.2 billion in cash.
Alpha specializes in B2B cross-border foreign exchange services for companies and investment funds across the UK and Europe, managing approximately $3 billion in deposits across more than 7,000 client accounts. Corpay believes the acquisition will enhance its FX technology capabilities and strengthen relationships with investment managers both in Europe and globally.
Alpha shareholders will receive 4,250 pence per share, representing a 55% premium over the closing price on May 1, prior to the announcement of potential takeover discussions. A previous offer in May was rejected.
“This transaction significantly expands our relationships with investment managers and establishes four Cross Border customer segments: corporates, financial institutions, investment funds, and digital currency providers,” commented Ron Clarke, CEO of Corpay.
Corpay has been active recently, taking a minority stake in the business payments automation platform AvidXchange in a deal involving TPG and securing a $300 million investment from Mastercard for a three percent stake in its cross-border operations.