Wirecard AG enters the North American market with the acquisition of Citi Prepaid Card Services
Wirecard AG / Key word(s): Takeover
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Wirecard AG announces that it has today reached a definitive agreement with
Citi Holdings to acquire the Citi Prepaid Card Services, by way of a
combined share and asset deal. Citi Prepaid Card Services, with its global
footprint, launched over 2,500 programs associated with top companies and
brands across the world, primarily in North America.
Subject to obtaining regulatory approvals and other customary closing
conditions, closing is expected as early as the fourth quarter of 2016 when
the total purchase price is due for payment in cash. Wirecard is estimating
an EBITDA contribution of the acquired business of more than USD 20 million
(EUR 18 million) for the fiscal year 2017. Financial terms of the
transaction were not disclosed.
Wirecard will be assuming all current staff with more than 100 employees at
the head office in Conshohocken (Philadelphia) and 20 employees at
different international hubs.
The customer portfolio of the acquired business consists of leading
telecommunication service providers, health sciences companies, global IT
and electronics manufacturers, internet and consumer goods corporations as
well as public sector clients. The portfolio is largely comprised of
incentive and compensation cards as well as corporate disbursement
The acquired prepaid card business will benefit from integrating with
Wirecard's existing global payments platform to expand the features and
functionality currently available to their clients around the world.
Tel.: +49 (0)89-4424-1424
Bloomberg: WDI GY
29.06.2016 The DGAP Distribution Services include Regulatory Announcements,
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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: Regulated Market in Frankfurt (Prime Standard); Regulated
Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich,
Stuttgart; Terminbörse EUREX
End of Announcement DGAP News-Service