Equals Group PLC reported on Wednesday it had agreed to a £283 million takeover by Alakazam Holdings Bidco Ltd.

The London-based fintech company and payment platform developer expects the deal to close during the second-quarter of 2025.

Alakazam is a London-based investor consortium whose owners include Towerbrook Capital Partners UK LLP, JC Flowers & Co UK LLP and shareholders of Railsr, the trading name for Embedded Finance Ltd.

Alakazam will purchase Equals for 140 pence per share. Equals said this was ‘fair and reasonable’ and that Equals’ directors intend to recommend the offer.

The takeover comprises of a cash consideration of 135p, plus a 5p dividend per Equals share.

Equals shares were up 12% at 134.00p each on Wednesday afternoon in London.

Equals shareholders whose collective stake is estimated at 16% have committed to support the deal, Alakazam said.

Shareholders votes in favour of the takeover must be at least 75% in order for it to pass.

The deal follows the 2023 acquisition and consolidation of Railsr, an embedded finance platform, by investment firm D Squared Capital, and Equals’s November 2023 announcement ‘that it was conducting a review of its strategic options’.

Having ‘strengthened its market position’, Railsr approached Equals to discuss formation of a fintech consortium.

Railsr Chair Phillip Hammond said Equals was ‘a well-run company with strong brands’ and that joining forces would enable the consortium to create ‘a significant new player’ in fintech.

Equals Chair Alan Hughes said: ‘The board believes that it has secured a future for the Equals Group in a private environment while delivering greater value to shareholders than was ascribed to the Equals Group as a standalone business executing an independent strategy.’

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