London-based cross-border payments company WorldRemit is to acquire Sendwave, a US app-based remittance company in a cash and stock transaction.

The deal is expected to close in the last quarter of 2020. Bloomberg reports the deal is worth more than $500m, according to a person with knowledge of the matter.

Founded in 2014, Sendwave’s digital remittance service serves East and West Africa, alongside Bangladesh, which it added this summer. The firm will continue to operate independently and retain its mobile applications, brand, management, employees and key partners.

In the last 12 months, ending 30 June 2020, WorldRemit and Sendwave have sent approximately US $  in transfers, generating approximately US $280 million in revenue.

“Both WorldRemit and Sendwave share a common purpose: allowing customers to easily and cost effectively send financial support to families, friends and businesses in other countries,” said WorldRemit CEO, Breon Corcoran.

“WorldRemit has one of the broadest and most accessible networks for money transfers globally. Combining it with Sendwave, which offers instant, no/low-fee and fully digital payments from North America and Europe to Ghana, Nigeria, Senegal and East Africa, addresses customer needs for fast and secure digital payments – especially given today’s travel restrictions and economic turmoil.”

Founded in 2010, WorldRemit’s investors include Accel, TCV and Leapfrog, long-term investors in tech brands including AirBnB, Facebook, Spotify and Expedia.

Will Fogel, CEO Sendwave added: “Our users send money so their loved ones can pay for necessities like utilities, healthcare and school fees. ‘Sendwave’-ing money is as easy as sending a text – one less worry for the hard-working and generous diaspora communities that we serve.

“We’re eager to combine WorldRemit’s wide reach with our recipe for success in areas like Kenya, Ghana, and Nigeria. Together, we can achieve a better service for current and future users.”