Fintech payments company Change Financial (ASX:CCA) announced this morning that it’s finalised the strategic acquisition of Wirecard’s Australian and New Zealand assets.
The company confirmed the completion of the sale conditions, which will see it take control of Wirecard’s Australia and New Zealand operations.
The acquisition follows Change’s initial announcement earlier this month, when the company jumped at the opportunity to acquire the Wirecard assets at attractive multiples.
And with CEO Alistair Wilkie – the former chief operating officer at $1bn payments platform EML Payments (ASX:EML) at the helm, Change is well placed to convert its strategic acquisition into a material profit generator in the years ahead.
Change said the deal gave it control over a strong global payments business that generated recurring revenues of $9.3m in the 2020 financial year, and total income of more than $15m.
Wirecard’s Australian and New Zealand business specialises in card management and payment platform solutions, for “banks and financial institutions as well as digital brands and fintechs”, Change said.
The business currently serves more than 120 customers across 35 countries, including the ‘Big Four’ Australian banks and major supermarket operators.
Importantly, all key personnel at Wirecard have stayed with the business post-sale – a direct indicator of senior management’s view about the platform’s growth prospects.
Prior to the acquisition by Change Financial, Wirecard’s regional leadership group also explored the potential for a management buy-out (MBO) for the assets, to capitalise on the global opportunity.
As of today (October 1), all required staff of Wirecard Australia & NZ are now employed by Change Financial.
In confirming the deal, Change advised that it has now started receiving signed assignment deeds for Wirecard customers.
In conversations with administrator McGrath Nicol, which selected Change’s offer in a competitive bidding process, the company expects to complete more assignment deeds in the months ahead.
In addition, existing Wirecard customers have continued to use the company’s services and pay their bills throughout the administration process.
With the sale now completed, Change is focused on accelerating the integration process and expanding market share in the months ahead.
The company flagged a “10-fold” increased of its addressable market via the introduction of new card services.
It also plans to onboard more than 10 companies from its existing client base in the US to the expanded product offering.