EML Payments has agreed to acquire 100% of Flex-e-Card (FEC).
The UK-based fintech trades as flex-e-vouchers and flex-e-card, for £21.6m ($27.55m).
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The fintech company provides gift card solutions to 226 shopping malls under contract in Europe and United Arab Emirates.
The all-cash acquisition will be funded through cash reserves of approximately £13.86($32.5). Furthermore, the remaining £8.15($19.13m) will be drawn from a debt facility with an Australian bank.
In addition, in the first year of ownership, Flex-e-Card is expected to generate around $4m to $4.1m in EBTDA.
The deal is expected to complete on 28 June, subject to satisfaction or waiver of conditions..
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By GlobalDataThis deal will help EML to bolster its position in the segment. Furthermore, it will manage more than 800 shopping mall gift card programmes worldwide.
EML CEO and managing director Tom Cregan was quoted by Business News Australia as saying: “Most of our M&A interest is opportunistic. But in this case it’s one that I’ve worked on for quite a while with the owners of that business but the timing was right to reinstigate that.
“We’ve undertaken significant due diligence and are more than comfortable about their future growth goals.
“For those investors that already understand our business pretty well there’s not a lot of brain surgery involved in understanding this business. It’s very similar financially.”
With this acquisition, EML will be able to gain presence in Poland and UAE.
