Randolph Pinna reports
CXI ANNOUNCES EXCHANGE BANK OF CANADA HAS RECEIVED REGULATORY APPROVAL TO ACQUIRE THE ASSETS OF A CANADIAN INTERNATIONAL PAYMENTS BUSINESS
Currency Exchange International Corp.'s wholly owned subsidiary Exchange Bank of Canada (EBC) has received regulatory approval to complete an agreement to acquire the assets of a business operating 24 years in the province of Quebec from the private family owners who were advised by Laurentian Bank Securities. The asset purchase agreement is expected to close on July 28, 2020.
The assets obtained include a total of approximately 400 active corporate customers that are engaged in international payments. Revenue from this client base has been approximately $1.8-million (unaudited) in the last 12 months. Currency Exchange's management believes that this transaction will be accretive to its annual earnings results. It is expected that approximately nine employees will be retained, including the chief executive officer, who will lead EBC's efforts in Quebec from the EBC Montreal office.
Randolph Pinna, president and chief executive officer of EBC, said: "Exchange Bank of Canada's entire board of directors, our management team and I are very proud to welcome the majority of the team who have been running the successful FX payments business for the last 24 years. We see this as a significant strategic step forward expanding EBC's international payment offering, including to the many clients it has acquired in Quebec. The customers will enjoy access to EBC's comprehensive financial services, technology and highly engaged support resources."
The acquired corporate international payment business will be integrated into EBC's current business. The retained employees are an experienced group capable of streamlining the transition for the corporate customers. Operational efficiencies are expected by bank management due to similar business operations and overlap of some back office functions. At the request of the seller, further details will remain private.
About Currency Exchange International Corp.
The company is in the business of providing a range of foreign currency exchange technology and processing services in North America, including the Hawaiian Islands. Primary products and services include the exchange of foreign currencies, wire transfer payments, global electronic fund transfers, purchase and sale of foreign bank drafts, and foreign cheque clearing. Related services include the licensing of proprietary foreign exchange software applications delivered on its Web-based interface
(CEIFX) and licensing retail foreign currency operations to select companies in agreed locations.
The company's wholly owned Canadian subsidiary, Exchange Bank of Canada, based in Toronto, Canada, provides foreign exchange and international payment services to financial institutions and select corporate clients in Canada through the use of its proprietary software.
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