Emerging Trends and Challenges

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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. 100
Euronet Acquires HiFX Transaction Details (cont.) Strategic Rationale for the Deal • Complements Euronet’s existing money transfer business – Euronet is already the number three player in the Consumer Remittance market (behind Western Union and MoneyGram) – Putting together HiFX and Ria should enable Euronet to broaden its product offerings, expand its geographical presence, and accelerate the growth of both businesses • Brings diversity and adds a fast growing revenue stream – HiFX caters to affluent consumers and small to medium sized businesses compared with Ria’s focus largely on migrant workers sending money back home; on average, HiFX’s transaction sizes are substantially larger than Ria’s • Enhances Euronet’s online transfer capabilities – HiFX has already developed a leading online platform that will complement Ria’s recently launched online transfer service • Leverage’s Euronet’s existing banking relationships – Euronet has many longstanding relationships with banks across Europe and Asia; HiFX and Euronet should be able to leverage these relationships to enter new markets 101
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April 2016 Financial Technology Par
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I. Executive Summary
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Global Money Transfer Industry Over
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Global Money Transfer Industry Tren
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Global Money Transfer Selected Indu
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Matt Oppenheimer, Remitly
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Global Money Transfer CEO Interview
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Gary McDonald, Cambridge Global Pay
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Global Money Transfer Gary McDonald
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Global Money Transfer Public Valuat
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Global Money Transfer Selected Publ
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“International Payment Specialist
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Page 105 and 106: Bridgepoint Acquires Moneycorp Tran
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Emerging Trends and Challenges

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