German fintech company Wirecard made its first acquisition move in two years, taking a majority stake in Chinese payment company AllScore Payment Services.
The deal intially gives Wirecard an 80 per cent holding in Allscore Payment Services, with an option to acquire the remaining 20 per cent after two years. Wirecard will pay a minimum of €38.6 million and maximum €72.4 million for the initial stake, with the outstanding holding priced €20.2 million, subject to earnings targets being met.
It also agreed a €16.7 million payment linked to EBITDA targets in 2020.
In a statement, Wirecard CEO Markus Braun said the Chinese market offered a “tremendous opportunity”, with Allscore Payment Services holding an attractive portfolio of operating licences, including one covering cross-border services, “a perfect match to the global platform strategy of Wirecard”.
Wirecard expects a low single-digit EBITDA contribution after integration costs in 2020, growing to more than €50 million in 2022.
Yao Lin, CEO, chairman and founder of AllScore Payment Service, said the deal will create an “ideal combination to serve Chinese merchants, as well as international clients doing business” in the country.Subscribe to our daily newsletter Back