Emerging Trends and Challenges

Euronet Acquires HiFX
Transaction Details
Transaction Overview
• On March 10, 2014, Euronet (NASDAQ: EEFT) announced plans to acquire U.K. based HiFX,
a provider of international payments and foreign exchange services to high end consumers
and businesses for total consideration of £145 million, or approximately US$242 million
• This price equates to 3.8x trailing revenues and 13.4x trailing adjusted EBITDA (1)
– A quarter of the purchase price will be paid in Euronet shares with the remainder paid in cash
– Euronet expects the transaction to close in the second quarter
– Euronet expects the deal to be approximately $0.15 accretive to annual cash earnings per share
HiFX at a Glance
• HiFX is based in the U.K. and was founded in 1998; the Company offers consumers and
businesses international payment and foreign currency services
• The Company has 86,000 active clients in four markets including the U.K., Australia, New
Zealand, and Europe
• 2013 transfer volume of $15 billion from 460,000 transactions; approximately 60% of
transactions came from the U.K. and the remaining 40% spread across Australia, New
Zealand, and Europe
• 2013 revenue of US$64 mm; 10% CAGR over the last three years
• 2013 adjusted EBITDA (1) of US$18 mm; 25% CAGR over the last three years
Source: Company filings.
(1) Euronet defines adjusted EBITDA as net income excluding interest, income tax expense, depreciation, amortization, share-based compensation expenses
and other non-operating or non-recurring items that are considered expenses under U.S. GAAP.
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