£283 Million Deal Paves The Way For Equals Group And Railsr Merger

Equals Group, a UK-based payments services company, is set to be bought by BidCo, a new private company owned by a group from TowerBrook Funds, JC Flowers Funds, and Railsr owners. The company will be acquired in a deal worth £283 million.

The deal is likely to conclude in the second quarter of 2025. Equals shareholders will get 140 pence per share—135 pence in cash and 5 pence as a special bonus.

According to an announcement by the London Stock Exchange (LSEG), BidCo and the Railsr owners have also signed a buy-and-sell agreement. The deal will see BidCo take over Railsr, with the plan to merge the two companies.

The Merger Could Create One Of The Largest Financial Platforms In Europe

Such a mix would possibly create one of the biggest and most useful financial platforms in Europe by combining Railsr’s financial solution with Equals’ money-moving abilities. This would help customers looking to use or add financial services to their products.

The group believes that combining Equals’ and Railsr’s strengths in payments, foreign exchange, and banking will help the businesses grow faster. It will also help the companies find new opportunities through the merger.

Equals was founded in 2007 and runs five main brands, including its most important platform, Equals Money, which provides international, local, and card payment services. Other brands include Equals Money Solutions, a business version of the Equals Money platform; Equals Connect, a customizable money exchange platform; FairFX, a travel card and global payments service; and CardOneMoney, a UK-based solution for small companies and individuals to oversee payments, cards, and direct debits.

Railsr, which was purchased last year by a group of investors, including Moneta VC and D Squared Capital, first reached out to Equals to suggest a possible merger in March.

Alan Hughes, Equals Group’s non-executive chairman gave his opinion regarding the deal. He stated that while the Board still believes in the long-term success of Equals Group, the team also understands the difficulties of the next part of the plan. They recognize the need to grow bigger to stay competitive and attract bigger clients.

The Merger Will Help Railsr Grow In The Financial Services Market

Hughes added that earlier this year, the team got an early offer from the group which was improved in July with a full cash offer of 135p. The final cash offer of 140p is even better for shareholders.

Hughes further stressed that in recommending this deal, the Board is confident it has secured Equals’ future in a private space. They believe this will give more value to stakeholders than what was thought for Equals Group as an independent business with its plan.

Philip Hammond, who became Railsr’s chairman in February, noted that this is an important step for Railsr at a key time in the growth of the financial services market. He added that the team is building a new important company and will be in a good position to offer better services to customers as the market is growing and changing.