(Reuters) -Corpay said on Wednesday it would buy British financial services provider Alpha Group in a $2.2 billion (1.6 billion pounds) cash deal, as the U.S.-based business payments firm looks to expand its presence among investment managers.

Alpha provides alternative bank accounts to European-based investment managers to fund their investments and pay expenses. It holds about $3 billion of deposits in more than 7,000 client accounts.

The deal will provide Corpay a runway to expand those relationships into the U.S. and Asia, adding heft to its global reach.

Alpha shareholders will receive 4,250 pence per share, representing a 55% premium to the closing price on May 1. A day later, Corpay revealed it was in talks for a possible takeover of Alpha, which later rejected the all-cash proposal.

Shares of Alpha jumped 25% to 4,145 pence on Wednesday.

"The banking account product and Alpha's technology extend our cross-border solution set and further diversify our revenue streams," said Corpay CEO Ron Clarke.

Alpha's board intends to unanimously recommend shareholders to vote in favor of the deal. Alpha founder Morgan Tillbrook has also signed an undertaking to support the transaction.

Oppenheimer Europe and Jones Day advised Corpay on the deal, which is expected to close in the fourth quarter of 2025.

Corpay expects to fund the deal through a mix of cash, debt and non-core divestitures. The company also reiterated its second-quarter outlook.

The transaction is expected to boost its 2026 earnings per share.

($1 = 0.7387 pounds)