Emerging Trends and Challenges
FTPartnersResearch-GlobalMoneyTransferTrends
FTPartnersResearch-GlobalMoneyTransferTrends
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Bridgepoint Acquires Moneycorp<br />
Transaction Overview<br />
Transaction Summary<br />
Moneycorp Overview<br />
■<br />
On August 29, 2014, Moneycorp was acquired by<br />
Bridgepoint, a London-based private equity firm, for<br />
approximately $351.6 mm from funds advised by SOF<br />
Investments<br />
CEO:<br />
Headquarters:<br />
Founded:<br />
Employees:<br />
Mark Hogan<br />
London, UK<br />
1962<br />
945<br />
■<br />
■<br />
■<br />
■<br />
■<br />
The Royal Bank of Scotl<strong>and</strong> (RBS) Special Opportunities<br />
Fund was the sole institutional investor in the Company prior<br />
to the transaction, owning 99.9% of the Company<br />
Moneycorp provides comprehensive foreign exchange <strong>and</strong><br />
money services to consumers <strong>and</strong> SMBs<br />
In 2013, Moneycorp acquired Thomas Cook’s corporate<br />
foreign exchange business<br />
Bridgepoint partner Stephen Green commented: "The FX<br />
market for SMEs is changing <strong>and</strong> offers much to go for with<br />
banks providing poor value <strong>and</strong> service leading customers to<br />
shift to specialist providers. Moneycorp is an exciting<br />
opportunity to back a talented management team with a fast<br />
growing UK business <strong>and</strong> significant international<br />
development potential.“<br />
The UK international payments market is expected to<br />
grow by 11 % per year as customers continue to switch<br />
away from banks <strong>and</strong> awareness of <strong>and</strong> trust in specialist<br />
providers increases. Banks increasingly view the SME <strong>and</strong><br />
private individual market as non-core as they focus on core<br />
lending products or FX <strong>and</strong> treasury for large corporates (1)<br />
Products <strong>and</strong> Services:<br />
■ Moneycorp offers international <strong>and</strong> online money transfer<br />
services to consumers <strong>and</strong> businesses; online travel money<br />
services for home delivery <strong>and</strong> for branch collection, which<br />
enables private <strong>and</strong> corporate clients to carry travel money<br />
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■<br />
■<br />
The Company also provides multi-currency prepaid cards that<br />
hold up to 14 currencies <strong>and</strong> enable customers to carry their<br />
travel money<br />
Moneycorp has an origination engine that combines<br />
telephone-based sales people, a partnership referral network<br />
<strong>and</strong> a retail presence at strategic hubs around the UK<br />
Moneycorp conducted 6.4 mm customer transactions valued<br />
at over $16.5 bn in over 150 countries <strong>and</strong> in nearly 100<br />
different currencies during 2013<br />
■ Moneycorp generated gross income of approximately $161<br />
mm in 2013, up from $108 mm in 2012 (representing 49%<br />
growth)<br />
(1) Bridgepoint Capital’s press release.<br />
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