HPS has announced the acquisition of CR2 Limited, a digital banking and payments software firm based in Dublin. This move strengthens HPS’s capabilities and expands its global reach, especially in English-speaking Africa and Australia.
The acquisition aligns with HPS’s AccelR8 strategic growth plan, promising significant revenue opportunities and synergy between the two companies’ technologies. The transaction is expected to be EPS accretive within the first year.
HPS, a leading global provider of payment software, has announced the complete acquisition of CR2 Limited, a prominent digital banking and payments software firm headquartered in Dublin, Ireland. With offices in Dublin, Dubai, Jordan, India and Australia, CR2’s flagship platform, BankWorld, supports over 90 banks across more than 50 countries, offering a suite of digital banking, digital wallet, and payment functionalities.
This acquisition underscores HPS’s commitment to strengthening its digital banking and payment solutions, enhancing its service to customers, partners, shareholders, and other stakeholders. CR2’s innovative platform and extensive client base in multiple regions present new revenue opportunities and synergies, complementing HPS’s existing offerings and strategic plans.
CR2’s business aligns well with HPS’s AccelR8 strategic growth plan, providing significant synergies between the two companies. This acquisition consolidates HPS’s market position in Africa, especially in French-speaking regions, and extends its reach into English-speaking Africa and Australia. The integration of CR2’s solutions with HPS’s PowerCARD will enhance HPS’s value proposition, offering robust digital banking solutions to current and new customers. CR2 generated €23.8 million in revenue in the 12 months to June 2023, and the transaction is expected to be EPS accretive within the first year.
HPS has a successful track record of acquisitions, including recent transactions involving IPRC and ICPS, which have bolstered its global presence and industry leadership. This acquisition of CR2 is another strategic milestone, positioning HPS for continued growth and innovation in the digital payments sector.
Abdeslam Alaoui Smaili, Co-Founder and CEO of HPS, commented, “Today marks a significant milestone in the continued growth of HPS. CR2 has a differentiated and exciting capability set, which is a strong fit for HPS and adds significant depth and breadth to our platform. Both companies share a common passion for excellence in digital payments and for providing high-value solutions to customers. With similar cultures valuing customer focus and high performance, we believe that HPS will be an excellent home for CR2 to thrive and deliver long-term growth. On behalf of the HPS board, I look forward to welcoming all our CR2 colleagues as we join forces to build upon our strong momentum going forward.”
Fintan Byrne, CEO of CR2, added, “We are pleased to be joining Abdeslam and the team at HPS. Together, we share a wealth of experience, a passion for innovation and a relentless focus on customer success. This transaction is a recognition of what the team in CR2 have created and the opportunity within our business for future growth. Importantly, it aligns with our continued international scale ambition. With additional scale comes even more opportunities to invest and innovate. This is an exciting time to be in the digital banking and payments technology sector. Together, we look forward to continuously delivering for customers and all stakeholders with confidence.”
Evercore is serving as the exclusive financial adviser to HPS, with Norton Rose Fulbright and Matheson LLP acting as legal advisers. The terms of the acquisition have not been disclosed, and the transaction is expected to close in the coming months, pending regulatory approval.