BRISBANE: Change Financial Limited (CCA) has entered into a binding agreement to acquire all the business assets of Wirecard NZ Limited and Wirecard Australia Pty Ltd for a total cash consideration of A$7.8 million.
The Wirecard Business being acquired by Change represents the Australian and New Zealand business assets of the vendors, which provide innovative card management and payment platform solutions to banks and financial institutions as well as digital brands and fintechs.
The Wirecard Business’s technology is active with over 120 customers, across more than 35 countries. The Wirecard Business has three well established products covering:
1. Card Management Platform–enables issuing of physical and virtual prepaid, debt and credit cards. Processing of transactions for card issuers.
2. Central managed testing hub for financial transactions –simulator system to test payment transactions to ensure financial service providers comply with relevant payment standards.
3. Mobile payments –allows a mobile phone to operate as a mobile payment device. Supports its own virtual wallet to register debit, credit and prepaid cards.
Cash consideration and costs are proposed to be funded via a placement to professional and sophisticated investors raising approximately A$6.4 million; and an Entitlement Offer to existing shareholders raising approximately A$4.9 million.
In July 2020, Wirecard NZ, and its wholly owned subsidiary Wirecard Australia, were placed into voluntary administration. McGrath Nicol and BDO were appointed voluntary administrators of Wirecard NZ and Wirecard Australia respectively.
The Wirecard Business is separate from the much publicised administration process of the global group which centred around the dealings of Wirecard AG, the ultimate parent company and not Wirecard NZ. Notably, the Wirecard Business (being acquired by the Company) was previously acquired by Wirecard AG in 2014 and was a profitable business with 29 years of operation. The Wirecard Business still remains a going concern.
Following a due diligence exercise and competitive sale process, Change Financial was selected as the preferred bidder and has signed a binding sale and purchase agreement with the administrators.
Change Financial Limited (ASX: CCA) is a US-focused fintech company developing innovative and scalable payments technology to provide solutions for businesses and financial institutions. Change Financial is building a Mastercard registered enterprise payments and card processor.