Wirecard, one of Europes online-payment service providers, will pay EUR 230 million (USD 254 million) in cash, financed by its capital and committed bank loans, it said in a statement on Tuesday, reuters.com reports. The deal includes 60% of the shares of GI Technology, part of Great Indian Retail Group and an issuer of prepaid cash-card, mobile-wallet and remittance technology.
GI Technology provides Indian consumers without bank accounts the ability to use cash for online payments or money remittance. Its cash cards can be topped up at banks, local stores or by mobile phone. Wirecard will take over more than 900 staff in India, the Philippines, Indonesia and Malaysia as part of the deal, which includes the iCashcard, Smartshop, StarGlobal and Commerce Payment brands.
The businesses it is buying are expected to achieve earnings before interest, tax, depreciation and amortisation (EBITDA) of more than EUR 7 million in 2015 and up to EUR 18 million in 2016, after integration costs, Wirecard said. Sales are seen at EUR 45 million in 2015, rising to more than EUR 75 million in 2016. Shares in Wirecard, which has a market capitalisation of about EUR 5.54 billion, were down 0.6% at EUR 44.76, broadly in line with Germanys Tecdax index.
For more information about Wirecard, please check out a detailed profile of this company in our dedicated, industry-specific online company database.
Every day we send out a free e-mail with the most important headlines of the last 24 hours.
Subscribe now