ASCHHEIM - Wirecard AG has today agreed to acquire the prepaid card issuing business of Newcastle Building Society, Great Britain. The prepaid card programme portfolio of Newcastle Building Society is one of the largest in Europe and represents a significant part of their business next to their core business of savings and mortgages financing.
The acquisition of the prepaid card portfolio will be effected through a newly founded UK subsidiary of the Wirecard group, Wirecard Card Solutions Limited. The agreed cash purchase price amounts to GBP 7.5 million (approx. EUR 8.9 million). Further earn-out payments of up to GBP 1.5 million (approx. EUR 1.8 million) for 2012 and of up to GBP 1.0 million (approx. EUR 1.2 million) for 2013 may be made, dependent upon the success of the business.
Newcastle Building Society currently has issued around 1.5 million prepaid cards in six European countries. The 24 employees currently employed in Newcastle will be retained by Wirecard to continue operating the business. Through this transaction Wirecard AG strengthens its position as a leading provider in the European prepaid cards market. For the year 2012 the executive board expects a contribution of the acquired business to the Wirecard group EBITDA of at least GBP 1.5 million (approx. EUR 1.8 million).
The acquisition will happen in two phases: the first will involve Wirecard Card Solutions Ltd. providing core functions to Newcastle Building Society as an outsourcing service provider; and the second seeing Wirecard Card Solutions Ltd. take full control of the business upon receipt of its authorisation as an Electronic Money Institution from the UK Financial Services Authority.
Dr. Markus Braun, CEO of Wirecard AG says: “With this transaction we are reinforcing our activities in Great Britain and pressing ahead with the internationalisation in the field of prepaid cards. I am convinced that we will not only successfully continue the existing sales partnerships, but we will also further expand these through our expertise in the field of innovative prepaid card solutions.”
The card programmes which have been taken over comprehend the whole range of prepaid offers: Debit cards, gift and voucher cards for the trade as well as various payment cards of MasterCard.
One of the sales partners is for example Tuxedo Money Solutions, who manage card programmes for a number of household names in the UK. Other partners are for example Flex-e-voucher Ltd., among other specialised in gift cards for shopping centres or the German VoiceCash Services GmbH & Co. KG, which recently announced a cooperation with a European telecommunications company and the world’s largest software company.