- Offer from US rival rejected
- Corpay faces 30 May deadline
- Alpha had ‘strong start’ to 2025
Investors in FTSE 250 fintech firm Alpha Group (ALPH) were in celebratory mood after the company’s board rejected a bid approach from New York-listed cross-border payments rival Corpay (CPAY:NYSE).
Alpha shares added as much as 220p or almost 8% to a new all-time high of £30.30 on the news, taking year-to-date gains to 750p or almost one third of its year-end market value.
OFFER REBUFFED
Late on Friday (2 May), US firm Corpay revealed it had been ‘in discussions with Alpha’ in relation to a possible cash offer for the company, although no terms were given.
Alpha’s board responded today by saying it had unanimously rejected the all-cash proposal, leaving Corpay until the end of this month either to announce a firm intention to make an offer or to walk away.
Corpay also has the option to ‘introduce other forms of consideration and/or vary the mix or composition of consideration of any offer’.
STRONG TRADING
In March, Alpha reported it grew its revenue by 20% on an underlying basis to £133 million last year, while total income – including net treasury income from interest on client balances – was £221 million, up 19% on the previous year.
The firm said the strong trading momentum it experienced in the second half of 2024 had continued into 2025, meaning it was confident in the outlook for ‘the current year and beyond’.
In particular, the board said it was looking forward to seeing the progress of its overseas businesses which it believes have the potential to build scale and repeat the success of the core UK business.
At the same time, the private markets division, which grew its revenue by 21% last year, has a wider range of products and is ‘still scratching the surface of its addressable market’.
