Cornerstone FS to acquire Pangea FX

International payment services provider Cornerstone FS has agreed to acquire FX and treasury consultancy Pangea FX in a deal worth up to £200,000.

Cornerstone said on Friday that the consideration for the acquisition consists of £25,000 in cash on completion and up to £175,000 in loan notes, with the precise value being dependent on Pangea's performance over a two-year period.

The loan notes, which have a term of two years, bear interest at a rate of 6% that will be paid quarterly in arrears. Cornerstone may, at its sole discretion, redeem the loan notes before the end of the two-year period.

In the year ended 31 March 2021, Pangea delivered revenues of £169,404, made a pre-tax profit of £58,325, and had net assets of £20,011.

Chairman Gareth Edwards said: "We are pleased to have completed this acquisition and welcome the Pangea FX team to Cornerstone.

"As we stated at the time of our fundraising, our intention was to invest in our sales team to drive growth and we believe this is the optimum means of achieving that as we also gain a book of business in the short term, which we expect to be significantly expanded going forward."

As of 0825 BST, Cornerstone shares were down 4.06% at 8.16p.

Reporting by Iain Gilbert at Sharecast.com