Posted on 09/12/2013 at 09:45
Wirecard AG to extend its operating business in Malaysia
Wirecard Group is disclosing another M&A transaction in Asia. With this acquisition, Wirecard will be expanding its operating business in Malaysia.
Wirecard will be also extending its offering of contactless payment solutions in the East Asian region. Wirecard has agreed to purchase all shares in three companies of the Korvac Group (founded in 1999). These consist of Singapore based PaymentLink Pte. Ltd., and two subsidiaries in Malaysia and Singapore.
With more than 24,000 acceptance points, PaymentLink operates one of the largest payment networks for local contactless payment cards. The company is also one of the leading domestic acquiring processors and distributes local prepaid cards. The Malaysian subsidiary is a well-established provider of PoS infrastructure as well as payment and technology services, mainly for banks and financial service providers.
In total, 63 employees will become part of Wirecard Group, with the management of the respective businesses staying on as well.
The considerations in connection with this transaction comprise cash payments (all converted into Euro) in an amount of approx. EUR 26.1 million and earn out-components of up to approx. EUR 4.8 million, dependent on the operational profit (EBITDA) of the acquired group in the years 2013 and 2014.
Markus Braun, Wirecard AG’s CEO says: „Entering the Malaysian market, Wirecard will strengthen its presence in South-East Asia and enhance its service portfolio, for both international merchants as well as the important domestic market.”
It is expected that the acquired companies will contribute an EBITDA of approx. EUR 2.5 million in the fiscal year 2014 and that integration costs will approximately amount to EUR 0.9 million. The closing of the transaction can be expected in the next two months.