Alpha provides alternative bank accounts to European-based investment managers to fund investments and cover expenses. The company holds about $3 billion in over 7,000 client accounts.
The deal will allow Corpay to build on these relationships in the US and Asia, strengthening its global presence. Alpha shareholders will receive 4,250 pence per share, a 55% premium to the closing price on 1 May. The following day, Corpay announced talks about a possible takeover of Alpha, which was later rejected as an all-cash offer.
Alpha shares jumped 25% to 4,145 pence on Wednesday.
“Alpha’s banking product and technology expand our suite of cross-border solutions and help further diversify our revenue streams,” said Corpay CEO Ron Clark.
Alpha’s board of directors intends to unanimously recommend that shareholders approve the deal. Alpha founder Morgan Tillbrook has also signed a commitment to support the transaction.
Corpay was advised by Oppenheimer Europe and Jones Day. The transaction is expected to close in the fourth quarter of 2025.
The company plans to finance the transaction through a combination of cash, debt financing and the sale of non-core assets. Corpay also reaffirmed its second-quarter guidance.
The deal is expected to be accretive to the company’s earnings per share in 2026.
Source: Reuters