Blackstone backs Currencies Direct with £140 million for M&A opportunities

Digital forex player will scout for acquisition opportunities to drive organic growth for spreading wings in Europe
Blackstone backs Currencies Direct with £140 million for M&A opportunities

London-based digital foreign exchange player Currencies Direct has roped in £140 million investment from Blackstone. The funding will be made in partnership with Currencies Direct’s management team, led by Keith Hatton, and pan-European growth investor Palamon and private equity firm Corsair.

While Blackstone will join the Currencies Direct board of directors, Palamon and Corsair will retain their majority co-controlling stake in the company. The strategic investment is expected to drive organic growth ambitions and target M&A opportunities for the fintech platform.

With £105 million in revenues and £43 million of EBITDA for the last twelve months ending January 2022, the platform is focusing on high-value use cases and segments of the FX market, as well as SMEs.

Keith Hatton, CEO, Currencies Direct, said: “This investment will help fuel our growth as we build on our significant momentum. Together with Palamon and Corsair, we have built a successful, sustainable, and innovative business with technology and global footprint required to deliver digital FX and international payment services.”

Qasim Abbas, senior managing director, Blackstone, said: “The platform’s scalable technology can be leveraged to integrate and capitalise on the significant consolidation opportunities in the market. WE plan to find attractive M&A targets that can promote its expansion and further enhance its solutions for customers.”

Blackstone’s investment concludes a series of successful dividend recapitalisations over the last 12 months resulting from the company’s continued strong performance. In January 2022, it completed a £235 million senior refinancing with Pemberton Asset Management, which followed a March 2021 £165 million refinancing.

The transaction is expected to close by the end of the first quarter of 2022.

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