Emerchants has completed the acquisition of 100% of the issued capital of Store Financial Services UK (SFUK) from the shareholders.
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The deal will provide the Australian prepaid financial card solution provider with a platform to launch the reloadable business into Europe, leveraging SFUK’s established and profitable non-reloadable business.
Emerchants will benefit from SFUK’s business by taking advantage of their existing banking, regulatory and operational relationships and expertise.
Tom Cregan, managing director of Emerchants, said: "We are delighted that SFUK will provide Emerchants with a low risk entry option into the European prepaid market. Emerchants has had numerous discussions with potential European customers in the past, and SFUK provides the perfect platform to service those customers in the near term."
Pursuant to the Share Sale Agreement, Emerchants agreed to pay $24.9m, comprising 50% cash and 50% Emerchants shares, for the acquisition, which was funded through a $14m placement to eligible institutional and sophisticated investors at $0.50 per share and a $12.45m equity placement to the SFUK vendors at $0.50 per share.
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