US FinTech Change Financial To Buy Wirecard Australia, New Zealand For $5.7M
The publicly-traded company that serves U.S. customers has agreed to buy Wirecard’s assets in Australia and New Zealand, the company said in an announcement.
In a filing with the Australian Securities Exchange, the
U.S. FinTech with offices in Hollywood revealed it bought the Wirecard
divisions for 7.8 million Australian dollars ($5.7 million).
FastInForm.com reported the purchase will expand Change
Financial as it marks another step in the dissolution of Wirecard’s worldwide
operations amid an accounting scandal.
Wirecard provides payment platform and card management
solutions to banks and FinTechs. Prior to its declaration of insolvency in
June, it hosted more than 120 customers in three dozen countries. Many of its
former clients were blue-chip stock companies, including Australia’s big four
banks and supermarket chains.
Change offers Banking-as-a-Solution (BaaS) services, a model
in which banks integrate their digital banking services into the products of
nonbank businesses.
Once valued at $28 billion, Wirecard filed for insolvency in
June in a Munich court following an auditor’s disclosure that $2.1 billion of
supposed deposits were missing from two banks in the Philippines. The company
admitted it had debts of more than $4 billion.
FastInForm reported the acquisition would instantly scale up
Change's operations and give the payments processor a global platform. It is
expected to add more than $11 million in revenue for the FinTech and comes with
partnerships with Visa, and American Express.
The sale comes a few days after Newcastle, England-based
Railsbank signed a deal to buy Wirecard Card Solutions in the U.K. Financial
terms were not disclosed. Under the deal, Railsbank will acquire Wirecard’s
card technology, clients and some employees.
“This is a huge step forward for everyone,” said Nigel
Verdon, CEO and co-founder of Railsbank, in a statement. “Our goal is to
provide a safe haven and to deliver an uninterrupted service for the [program]
managers and the cardholders. We have already successfully migrated a number of
clients and have everything in place for a phased and controlled migration at
scale.”
Last month, Michael Jaffé, Wirecard’s court appointed
insolvency administrator, said an agreement has been reached to sell Wirecard’s
Brazilian business to Sao Paulo-based PagSeguro Digital, one of the nation’s
largest mobile payment-based eCommerce companies.
“It is particularly pleasing that the sale of Wirecard
Brazil has been the first success with respect to the sale of assets because
the framework conditions of the Wirecard insolvency proceedings have been, and
still are, very difficult,” Jaffé said in a statement.
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