Cross-border paytech Cornerstone sheds e-money subsidiary in £600k deal
Cross-border payments and foreign currency management firm Cornerstone FS is set to sell its e-money institution subsidiary Avila House to Aspire Commerce, a UK-based provider of payment accounts and lending services, in a £600,000 deal.
Cornerstone FS CEO James Hickman
The share purchase agreement (SPA) will see Cornerstone shed its non-core subsidiary after its primary operating subsidiary, Cornerstone Payment Solutions, was approved by the Financial Conduct Authority (FCA) in August 2021 to operate as an authorised electronic money institution (EMI).
The proceeds from the £300,000 sale of Avila will be used to strengthen Cornerstone’s existing cash reserves. And a software licensing agreement between the two firms will see Aspire – trading as MulootMoney.com – license the Cornerstone platform for a period of 12 months, generating a minimum of £290,000 for Cornerstone.
Aspire will utilise Cornerstone’s services for any FX payments made on behalf of its clients.
James Hickman, CEO of Cornerstone, says: “This is an excellent deal for Cornerstone and reflects the value of an e-money registration as well as our platform.”
The regulatory approval of the deal is expected in Q1 2023.
