Equals Group to be acquired by consortium of investors for £283m, paving way for Railsr merger
Equals Group, a UK-based provider of scalable payment solutions, is set to be acquired by BidCo, a newly established private limited company owned by a consortium made up of JC Flowers Funds, TowerBrook Funds, and Railsr shareholders, in a deal worth £283 million.
Equals shareholders to receive 140 pence per share
The deal, expected to close during Q2 2025, will see Equals shareholders receive 140 pence per share – 135 pence in cash plus a special dividend of 5 pence per share.
According to a London Stock Exchange (LSEG) announcement, BidCo and the Railsr shareholders have also entered into a sale and purchase agreement that will see BidCo acquire Railsr, with the aim to merge the two companies.
The announcement reads: “Such a combination would potentially create one of the largest and most capable embedded finance platforms in Europe by bringing together Railsr’s embedded finance solution and Equals’ cross-border transaction capabilities, providing an ability to serve customers wishing to utilise or embed financial services products within their own product offerings.”
It continues: “The consortium strongly believes that by combining Equals’ and Railsr’s respective strengths in foreign exchange, payments and banking services, it will further accelerate the right-to-win of the respective businesses and have identified synergies in combination.”
Founded in 2007, Equals operates five core brands, including its flagship platform, Equals Money, which offers international, domestic, and card payments services.
Other brands include Equals Money Solutions, an enterprise version of the Equals Money platform; FairFX, a travel card and international payments service; Equals Connect, a white-label FX platform; and CardOneMoney, a UK-focused product for small businesses and individuals to manage direct debits, cards, and payments.
Railsr, which was bought last year by a consortium of VC firms including D Squared Capital and Moneta VC, initially approached Equals to propose a potential merger back in March.
Commenting on the deal, Equals Group’s non-executive chairman Alan Hughes states: “Whilst the Board remains confident in the Equals Group’s long-term prospects, we also acknowledge the challenges of the next phase of our strategy, and the need for scale to remain competitive in attracting larger target clients.”
Hughes adds: “Earlier this year we received an initial proposal from the Consortium which was revised and improved in July with an all-cash offer of 135p. Today’s recommended cash acquisition, valued at 140p, is a further improvement for shareholders.”
“In recommending this transaction, the Board believes that it has secured a future for the Equals Group in a private environment while delivering greater value to shareholders than was ascribed to the Equals Group as a standalone business executing an independent strategy,” Hughes concludes.
FinTech Futures has reached out to Equals and Railsr for comment.
