On May 20th 2014, Leading global electronic payments provider and distributor, Euronet Worldwide, announced that it had completed the acquisition of HiFX, based in UK. This acquisition complements Ria, Euronet’s existing money transfer business, says the company.
'We are excited to welcome HiFX into the Euronet group of companies. Their online presence, affordable rates and deep knowledge of foreign exchange markets, combined with our strong bank relationships, global market entry expertise and solid balance sheet will allow us to expand and improve both Ria's and HiFX's product offerings and increase our market share in a fast-growing sector that produces 9.9 Bn payment transactions per year,' stated Euronet's Chairman and CEO, Michael J. Brown.
With this collaboration, Euronet will expand its offerings to include online-initiated, account-to-account international payment and foreign exchange services to high-income individuals as well as small-to-medium sized businesses.
Under the terms of the purchase agreement announced on March 10, 2014, Euronet acquired HiFX for approximately GBP145 Mn or $242 Mn, reports WSJ.
The purchase consideration was comprised of approximately 1.3 Mn shares of Euronet stock and approximately $185 Mn in cash.
This includes approximately $78 Mn of cash on hand and approximately $107 Mn funded using Euronet's revolving line of credit.
HiFX is now a wholly owned subsidiary of Euronet.
It will present its financial results with Euronet's existing money transfer segment.
Consistent with the previous announcement, Euronet expects HiFX will contribute approximately 15 cents to Euronet's annual cash earnings per share in the first full year under Euronet ownership.
Recently, Walmart Inc stated that it would announce a new service with Euronet Worldwide Inc. WalMart announced that the new service would cut transaction fees for its low income customers by nearly 50% in comparison to other offerings. The service was made available beginning April 24th.
About Euronet Worldwide, Inc.
Euronet Worldwide is an industry leader in processing secure electronic financial transactions. The Company offers payment and transaction processing solutions to financial institutions, retailers, service providers and individual consumers. These services include comprehensive ATM, POS and card outsourcing services, card issuing and merchant acquiring services, software solutions, cash-based and online-initiated consumer-to-consumer and business-to-business money transfer services, and electronic distribution of prepaid mobile phone time and other prepaid products.