Wirecard has acquired the payments business of Great Indian (GI) Retail Group, a Southeast Asian electronic payment and e-commerce company.
Under the terms of the deal, Wirecard will buy 100% of the shares from GI Retail and financial investors of companies operating payment services in India, the Philippines, Indonesia and Malaysia under the iCashcard, Smartshop, StarGlobal and Commerce Payment brands.
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The deal will also include the acquisition of 60% shares of GI Technology, a licensed prepaid payment instrument (PPI) issuer in India.
Wirecard will buy GI Retail and GI Technology for EUR230m in cash. The agreement also covers further payments of up to a total of EUR110m that are linked to the overall financial performance of the acquired businesses in calendar years 2015 to 2017.
As part of the acquisition, Wirecard will acquire over 900 staff in offices in Delhi, Chennai, Hyderabad, Bangalore, Mumbai, Kolkata, Lucknow, Manila, Batam and Kuala Lumpur.
The acquired businesses are expected to achieve EBITDA of more than EUR7m for 2015 and between EUR15m and EUR18m for 2016 after integration costs, Wirecard said in a statement.
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By GlobalDataConsolidated revenues from the acquired businesses will exceed EUR4m in 2015, while revenues for 2016 are expected to exceed EUR75m.
GI Technology’s iCASHCARD is a semi-closed-loop electronic wallet, which can be recharged with cash, on a mobile or over the Internet and is accepted at over 10, 000 e-commerce sites in India.
