A potential takeover looms as US-based StoneX considers acquiring CAB Payments, a London-listed fintech firm.
- CAB Payments disclosed receipt of a non-binding proposal from StoneX at £1.45 per share, valuing the company at £368.5 million.
- Originally approached in July with an offer of £1.15 per share, this revised proposal is under review by CAB Payments’ board.
- Shares of CAB Payments saw a dramatic drop following their IPO, prompting new strategic directions including this potential acquisition.
- StoneX, a globally recognized financial services firm, holds a Fortune 500 ranking, fueling interest in its potential acquisition plans.
CAB Payments, a fintech firm listed on the London Stock Exchange, is at the center of a potential acquisition by StoneX, a well-established American financial services company. The company recently announced that it received a non-binding proposal from StoneX, which is listed on Nasdaq, to acquire all shares at a price of £1.45 each. This offer would value CAB Payments at approximately £368.5 million. The proposal follows StoneX’s series of approaches beginning in July, initially offering £1.15 per share, which was subsequently rejected by CAB Payments’ board.
After going public in July 2023, CAB Payments was valued at £851 million in its initial public offering (IPO), marking a significant development for the London Stock Exchange amid a slow year for technology listings. Despite an initial rise in capital amounting to around £335 million, the company’s fortunes took a downturn three months later when shares plummeted by over 70% due to decreased revenue forecasts.
The leadership at CAB Payments underwent changes with CEO Bhairav Trivedi stepping down less than a year post-IPO, and Neeraj Kapur assuming the role of CEO in June 2024. This leadership transition coincides with CAB Payments’ recent expansion into Europe, facilitated by acquiring a payment service provider license from Dutch authorities, allowing operations across the European Economic Area.
StoneX, founded in 1924, commands a strong presence in the financial services sector and was ranked 223rd on the Fortune 500 list in 2024. The firm is now weighing its options on whether to proceed with a firm offer by the 7th of November deadline or decide otherwise. Notably, the non-binding nature of the proposal means there is no guarantee that an official offer will be forthcoming.
The evolving scenario around CAB Payments and StoneX is being monitored closely by industry analysts, reflecting a complex interplay between market valuations, strategic corporate decisions, and leadership dynamics. Both entities seem to be navigating intricate paths towards their future objectives.
The unfolding situation encapsulates pivotal change at CAB Payments, revealing broader industry trends.
