Emerchants has agreed to acquire Store Financial Services UK (SFUK), a provider of prepaid stored value programs in nine European countries, including the UK, for A$24.9m.
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The acquisition provides Emerchants with a platform to launch the reloadable business into Europe, leveraging SFUK’s established and profitable non-reloadable business.
SFUK’s ultimate shareholders include SFUK’s founder and CEO, David Shewmaker (30%), Store Financial Systems (40%) and Emerchants managing director, Tom Cregan (25%) (Vendors).
Commenting on the acquisition, Cregan said: "The acquisition of SFUK provides 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 platform to service those customers in the near term.
"Already, Emerchants has signed a letter of intent with a UK-based corporate bookmaker, and we now anticipate re-loadable product launches within 12 months. Without the SFUK acquisition, the time to product launch would have been significantly longer and prohibitively expensive in terms of greenfield start-up costs."
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