Wirecard acquires prepaid cards division of Newcastle Building Society
Wirecard AG / Key word(s): Mergers & Acquisitions
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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
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
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
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
Tel.: +49 (0)89-4424-1424
Bloomberg: WDI GY
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Company: Wirecard AG
85609 Aschheim b. München
Phone: +49 (0)89-4424 1400
Fax: +49 (0)89-4424 1500
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