Hertford International, an AIM-listed specialist in the pre-paid debit card market, has announced the proposed acquisition of Cheque Exchange, a cheque cashing and money remittance business.

Hertford International, an AIM-listed specialist in the pre-paid debit card market, has announced the proposed acquisition of Cheque Exchange, a cheque cashing and money remittance business. Provident Financial Plc sold the business in a shares and convertible loan notes deal worth £3 million.

The deal, which is a reverse takeover under the AIM rules, will give Hertford access to an established operational infrastructure, a sales force and positive cash flow. It will also cut the costs of Hertford’s current outsourced services as well as provide a distribution channel through which to sell its existing products and services.

The £3 million price tag will be satisfied with an initial cash payment of £1.25 million and further instalments through to 2011.

Lewis Findlay, CEO of Hertford, said: “There can be no doubt that in these credit-squeezed times, individuals often find the ability to cash a cheque, or borrow money in the short term, immensely helpful with managing their finances. Many third party cheque cashing operators are currently stating that they have seen significant growth in these areas in recent months.”