GSTechnologies (GST ) has entered into a conditional agreement to acquire the whole of the issued share capital of Angra, a UK-based foreign exchange and payment services company.
GST, which provides integrated information and communication technology infrastructure solutions, is acquiring Angra from its director and sole shareholder Rodolfo Modesto Basilio.
Angra, is an FCA approved authorised payment institution (“API”) business focused on conducting ‘fast, secure and low-cost’ foreign exchange business and payment services internationally. In the year to 30 September 2020 Angra transacted £64m in business.
In FY20, Angra reported gross assets of £1.7 million of which £0.47 million was cash. For the year to 30 September 2020, Angra also reported profit before tax of approximately £0.069m.
Under the terms of the agreement, GST will conditionally acquire 100% of the issued share capital of Angra for £0.8 million which payable in cash upon completion and, in addition, Rodolfo will assign his £0.1m loan to Angra to the Company for a nominal consideration.
In its recent prospectus, GST outlined its intention to seek an API licence ‘in order to be able to connect to traditional banking payment systems and agent networks, operate a remittance business in the UK and grow revenues from the stablecoin network and applications that are being developed from the collaboration with Wise MPay, announced earlier this year,’ it said.
Following its conditional acquisition of Angra, GST will not now continue its own process to obtain a separate API licence as it is expected that this will not be required, it explained.
Tone Goh, Chairman of GST, said: “The acquisition of Angra, based in London, is intended to accelerate the development of our blockchain enabled neobanking business. Subject to the completion of our remaining due diligence, and the receipt of FCA approval, the acquisition of Angra will provide an established base on which to build our planned UK business.”
He added, “With the proceeds of our recent successful fundraising we continue to rapidly progress our fintech plans, in conjunction with our collaboration partner, Wise MPay.”
Last month, GST raised £1.415m so that the Company could finance its sales and marketing costs as well as the costs of development and implementation of the Wise MPay technology.
At the time, the Company highlighted to investors that it also intends to use the proceeds of the fundraising ‘to take advantage of further strategic opportunities as they arise.’
The Company has described its business strategy as continuing to develop its existing ICT and IoT offerings to serve major governmental and private organisations worldwide while at the same time expanding its range of fintech services using blockchain technology.
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