Cornerstone FS Plc today announced it has signed a share purchase agreement for the sale of its non-core subsidiary, Avila House Ltd., a registered small electronic money institution. Aspire Commerce Ltd., trading as MulootMoney.com, the provider of payment accounts and lending services has agreed to acquire the company for £300,000 to be paid in cash on completion.
Additionally, Cornerstone FS and Aspire have made a software licencing agreement to licence the Cornerstone platform for 12 months, which will generate £290,000 at a minimum for Cornerstone FS.
The Group acquired Avila in October 2020 to secure a Small Electronic Money Institution. The company’s primary operating subsidiary, Cornerstone Payment Solutions Ltd. (formerly FXPress Payment Services Ltd.) gained approval from the Financial Conduct Authority (FCA) as Authorised Electronic Money Institution in August 2021, which replaced the more limited license of Avila.
According to the official announcement, the deal is pending regulatory approval from the FCA which is expected to happen in the first quarter of next year. Under the terms of the transaction, Cornerstone FS will receive revenues in stages over the 12-month period, with the majority expected to be recognised in H2 2023.
This is an excellent deal for Cornerstone and reflects the value of an e-money registration as well as our platform. As we have said previously, we have experienced strong trading momentum throughout the year, and it is great to now be ending 2022 having secured an additional £600,000 for next year. We look forward to reporting on our further progress.
Experienced writer and journalist, working in the global online trading sector, Steffy is the Editor of LeapRate. She has previous experience as a copywriter and has been with the company since January 2020. Steffy has a British and American Studies degree from St. Kliment Ochridski University in Sofia.