12/16/2011

Wirecard acquires prepaid cards division of Newcastle Building Society


Wirecard AG / Key word(s): Mergers & Acquisitions
16.12.2011 08:45

Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.


Munich (Aschheim), December 16, 2011. 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.



Contact:
Iris Stöckl 
Tel.: +49 (0)89-4424-1424
e-Mail: iris.stoeckl@wirecard.com
http://www.wirecard.com
ISIN DE0007472060
Reuters: WDI.GDE
Bloomberg: WDI GY






16.12.2011 DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de

 
Language:     English
Company:      Wirecard AG
              Einsteinring 35
              85609 Aschheim b. München
              Germany
Phone:        +49 (0)89-4424 1400
Fax:          +49 (0)89-4424 1500
E-mail:       ir@wirecard.com
Internet:     www.wirecard.com
ISIN:         DE0007472060
WKN:          747206
Indices: TecDAX, Prime All Share, Technology All Share Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Hamburg, München, Stuttgart  
End of Announcement DGAP News-Service  



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