ORLANDO, Fla., Sept. 09, 2019 (GLOBE NEWSWIRE) -- Currency Exchange International, Corp. (TSX:CXI) (OTCBB:CURN), a full service foreign exchange technology and services provider, is pleased to announce the completion of its acquisition of eZforex.com, Inc. (“eZforex”), a Longview, Texas-based privately-held foreign currency and technology business which has wholesale banknote financial institution customers located throughout the United States, by having acquired 100% of the issued and outstanding shares in the capital stock of eZforex pursuant to the terms of a Share Purchase Agreement that was both executed and completed by the parties to such agreement effective as of September 6, 2019. The purchase price is US$4,250,000 inclusive of US$1,000,000 in net positive working capital left in eZforex on completion of the transaction to facilitate the seamless continuation of the operation of the eZforex business in the ordinary course immediately after closing.
The acquisition of eZforex will complement CXI’s existing client base and wholesale banknote operations. eZforex is a leading provider of foreign exchange solutions to financial institutions, which rely on eZforex's integrated turnkey solutions to manage their foreign currency needs. The customers of eZforex include a total of approximately 4000 transacting locations represented by Banks, Bankers’ Banks (being financial institutions that provide financial services to community banks in the U.S.), Credit Unions and Corporate Credit Union groups. Net revenues from this client base were approximately US $1.7 million (audited) in the year ended December 31, 2018. In the first six months of 2019, ended June 30, 2019, net revenues were USD $1.3 million (unaudited). CXI’s management believes that this transaction will be accretive to its annual EBITDA results, starting in 2020. It is expected that approximately one-half of the staff of eZforex will be retained.
“We are proud to bring eZforex into the international financial services group that is led by Currency Exchange International, Corp and offer EZ’s client base the expanded international services available by joining with CXI” said Randolph Pinna, President and Chief Executive Officer of CXI. “The core financial institution market eZforex serves will continue to enjoy professional service, innovative technology, and benefit from additional back office support and access to additional foreign exchange based services to bring additional value and convenience to their end consumers.”
Operational efficiencies are expected by CXI management due to the overlapping financial institution market and services. eZforex has been a longstanding client of CXI, and CXI is very familiar with both eZforex management and its client base. The transaction will be financed from CXI’s available cash resources and will not require additional external financing.
About Currency Exchange International, Corp.
The Company is in the business of providing a range of foreign exchange technology and processing services in North America. Primary products and services include the exchange of foreign currencies, wire transfer payments, Global EFTs, purchase and sale of foreign bank drafts and international travelers’ cheques, and foreign cheque clearing. Related services include the licensing of proprietary FX software applications delivered on its web-based interface, www.ceifx.com (“CEIFX”), and licensing retail foreign currency operations to select companies in agreed locations.
