M&A News: StoneX Makes New Bid for U.K’s CAB Payments after Cross-Border AI Boom

Shares in global financial services network group StoneX SNEX -1.47% ▼ edged higher today as it made a £241 million cash offer for U.K. cross-border payments business CAB Payments.

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CAB is Proving Popular

StoneX is offering 95p per share for London-listed CAB, which has recently rejected a number of takeover approaches from its largest shareholder Helios Investment Partners.

It was Helios, which floated CAB on the London Stock Exchange in July 2023, but now it wants it back in the fold. However, CAB believes Helios’s offers fundamentally undervalue its business.

StoneX has also previously bid for CAB but the talks did not lead to a deal. However, it believes that this new offer is at an “attractive valuation” and a “significant premium” – 11% higher – than that bid by Helios.

StoneX said: “We see a high degree of complementarity between CAB and StoneX’s payments business, with the potential combination of both creating a leading, global specialist in Emerging Markets payments. StoneX is therefore confident that it is the best long-term owner and custodian of CAB, with the potential combination unlocking incremental opportunities for key stakeholders.”

Its recent FY25 results showed a return to double-digit total income growth, a 14% rise in adjusted EBITDA to £35 million and improved diversification by clients, currencies and geographies, helped by new licensed offices in New York and Abu Dhabi. Management said a reshaped cost base, expanded liquidity network, AI-enabled, scalable platform and deep central bank relationships give the group scarcity value.

Cross-Border Powering Forward

The global cross-border payments market reached $194 trillion in 2024 and is forecast to reach $320 trillion by 2032 boosted by increased adoption of AI, tokenization, and digital/crypto assets.

The board of CAB, excluding the directors tied to Helios’ shareholding, said it was “currently evaluating the possible offer with its financial and legal advisers”, adding: “In evaluating the possible offer, the independent board will take into account the significant improvement in the company’s financial and operational performance … The independent board will also continue to engage with its shareholders.”

Is SNEX a Good Stock to Buy Now?

Given the lack of analysts covering SNEX, let’s take a look at how its share price has performed over the last three months. As can be seen below, it is up nearly 7%.

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