Fri, Nov 22 2024

Finseta Sells Non-Trading Subsidiary Capital Currencies to Undisclosed Buyer for £150,000

June 11, 2024
1 Min Read

Finseta, which was formerly known as Cornerstone FS, is a foreign currency management and cross-border payments company. It has successfully sold its non-trading subsidiary, Capital Currencies, for £150,000 in cash. The buyer's name remains undisclosed.

Finseta stated at the time of the sale that it was in “the best interests of [Finseta] to realise the value of this non-core asset through its disposal to a non-competing entity” when it first announced the sale of Capital Currencies, which offers SMEs currency exchange and international payment services.

In order to "expand Cornerstone's presence in its core target market and, in line with the Group's stated strategy, increase revenue generated by direct clients," it first purchased the subsidiary in February 2022 for £586,000, with a maximum payment of £3 million.

The transaction comprised all of Capital Currencies' clients, which were mostly bigger SMEs and UK corporations, as well as the company's UK API license, staff, and founder, Craig Strong, who is currently director of business development at Finseta.

Capital Currencies "allows us to realise value from the sale of a non-trading subsidiary that holds a licence surplus to our requirements," according to James Hickman, CEO of Finseta, in a recent statement. The money raised from the sale will be used to "further strengthen our cash position and our ability to capitalise on the excellent momentum that we have been experiencing across the business."

In January 2023, the group sold its subsidiary Avila House, an e-money institution, for £600,000 to Aspire Commerce, a UK-based supplier of loan services and payment accounts.

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