Having acquired Thomas Cook’s corporate foreign exchange business in 2013, Moneycorp has now itself been purchased as the company looks to go global.
FatFace and Pret A Manger investor Bridgepoint has stepped in as the acquirer and will now look to guide Moneycorp’s expansion against a backdrop of considerable payments market growth. The deal sees Royal Bank of Scotland spin-off backer SOF Investments exit.
With reported reeves of £97.2 million in 2013, Moneycorp dealt with £10 billion worth of currency trades in 2013 and has a focus on small businesses and private consumers.
Moneycorp CEO Mark Horgan says, ‘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.’
According to a statement, Moneycorp sees potential future growth to come from the increased traffic of smaller businesses moving away from banks to specialist providers. Banks are ever more viewing SMEs and private individuals as ‘non-core’, Moneycorp says, due to a focus on FX and treasury for large corporates.
As well as its online and telephone operations, Moneycorp also has ‘travel hubs’ at Heathrow and Gatwick as well as 10 stores and 61 other airport locations.
Stephen Green, partner at Bridgepoint, comments, ‘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.’
See also: Wiggle rides over to Bridgepoint