US payments colossus Corpay's advance on UK fintech firm within FTSE 250 has been spurned
Financial Services Firm Alpha Group Stands Firm Against Corpay Takeover Bid
Alpha Group International, a London-based fintech and consultancy firm, has stood its ground rejecting a takeover bid from Corpay, a major U.S. business payments giant. Previously rumored to be in merger talks, Alpha declared that its board of directors, in consultation with financial advisers, had unanimously turned down the offer.
Corpay, headquartered in Atlanta and part of the S&P 500, must now either pull the plug or come up with a more compelling bid by 5 PM on May 30, as per City takeover rules. Known for designing tools that empower businesses to pay vendors, Corpay boasted a record turnover of nearly $4 billion and an adjusted net income of $1.4 billion in 2021.
With Alpha's rejection, the company's shares soared 5.7%, making it one of the FTSE 250's top gainers. This momentous rebuff came on the same day Deliveroo, a London-listed food delivery platform, agreed to a £2.9 billion takeover by moving rival DoorDash.
Deliveroo's co-founder, Will Shu, stands to make an estimated £172 million from the deal, pocketing a tidy sum thanks to his 6.4% stake in the firm. Deliveroo secured its first yearly profit last year, ending years of massive losses from the company's breakneck expansion.
The potential acquisition of Deliveroo could mark another loss for the London Stock Exchange as it loses key companies to foreign buyers. Among the UK firms snapped up last year were cybersecurity specialist Darktrace and building products manufacturer Tyman. Even in the first few months of 2025, the Bank of England currency printer De La Rue, GP surgeries owner Assura, and investment firm BBGI Global Infrastructure have all struck deals with foreign buyers.
Analysts attribute this acquisition wave to the attractive valuations of UK businesses in comparison to their U.S. counterparts. Despite the increased investor interest, Russell Mould, investment director at AJ Bell, maintains that the UK market still offers numerous valuation opportunities, making it fertile ground for M&A growth.
Related Articles:
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- A Look Behind Bank of England Currency Printer De La Rue's Sharp Takeover
- Assura GP Surgeries On the Verge of Acquisition
Investing Platforms to Watch Out For:
- AJ Bell
- Hargreaves Lansdown
- Interactive Investor
- InvestEngine
- Trading 212
- In the face of Corpay's takeover bid, Alpha Group International, a London-based fintech and consultancy firm, has turned down the offer, as per City takeover rules.
- The rejection of Corpay's bid caused Alpha's shares to soar, making it one of the top gainers in the FTSE 250.
- Meanwhile, Deliveroo, a London-listed food delivery platform, agreed to a £2.9 billion takeover by its U.S. rival DoorDash, highlighting ongoing interest in investing in the UK market.
- This trend of UK businesses being attractive targets for foreign buyers might continue, as advisory firm Russell Mould from AJ Bell, an investing platform, maintains that the UK market still offers numerous valuation opportunities.
- AJ Bell, one of the investing platforms to watch out for, could potentially benefit from this M&A growth wave in the UK, given its expertise in finance and investing businesses.
