Corpay in talks over possible takeover of UK's Alpha Group

(Reuters) -Business payments firm Corpay Inc said on Friday it was in talks with Alpha Group International about a possible cash offer for the UK-based financial services provider.

Corpay, which offers tools that allow businesses to make payments to vendors, is required by law to announce a firm offer for Alpha or walk away by May 30.

UK companies have seen a rise in M&A activity recently. A survey last November showed private equity firms expect increased deal activity in the UK in 2025.

Alpha, which provides fintech and consultancy services to clients internationally, reported a 10% jump in its full-year underlying pretax profit to 47.4 million pounds ($62.96 million) in March.

Shares of Alpha rose up as much as 6.4% to 2,920 pence on Friday and were up more than 17% so far this year as of Thursday's close. Corpay's shares were up 2.1% by 1638 GMT.

Alpha did not immediately respond to a Reuters request for comment.

($1 = 0.7528 pounds)

(Reporting by Shanima A in Bengaluru; Editing by Tasim Zahid)