A US-based fintech-focused company Change Financial has launched a capital raising to acquire the Australia and New Zealand arm of payment fintech solution provider Wirecard. The ASX-listed Change Financial announced that it has entered a binding agreement to successfully acquire Wirecard ANZ’s all business assets for $7.8 million.
The news comes after Wirecard Australia and New Zealand goes into voluntary administration into 2020. BDO and McGrathNicol were appointed as voluntary administrators for Wirecard New Zealand and Australia respectively for the scandal-plagued payments fintech firm.
More on Wirecard’s acquisition
Change Financial is positive that Wirecard’s acquisition will bring great growth and scale to its business through the addition of more than 120 new customers, a global workforce and a presence in more than 35 countries.
The cost and cash consideration of $7.8 million is all set to be funded via an institutional placement to investors of about $6.4 million with an entitlement offer to the existing shareholders for about $4.9 million.
The US-based fintech-focused company aims to enhance the existing platform of Wirecard to increase its presence in the US market and focus on getting at least 10 new US customers on board over the upcoming 12 months.
The voluntary administration of Wirecard A/NZ
The Australia and New Zealand business is separate from the greatly publicised global group that centered on the Wirecard AG (parent company) dealings. Wirecard AG acquired the Aust/NZ business in 2014 which Change Financial says was profitable for almost 29 years of its operations.
Change Financial says the business of Wirecard continues to remain an ongoing concern. After a competitive sales process and a due diligence exercise, Change Financial was chosen as the preferred buyer and signed a binding sales and purchase agreement with the administrators.
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