GreenBox POS, a fintech leveraging blockchain security to build payment solutions, has signed a binding MoU to acquire Transact Europe Holdings OOD.
Transact Europe Holdings OOD is the single entity shareholder of Sofia Bulgaria-based and EU regulated electronic money institution Transact Europe EAD (TEU).
Besides being a principal level member of Visa, TEU is a worldwide member of MasterCard, and a principal member of China UnionPay.
TEU is also part of the direct SEPA programme.
It issues prepaid cards and provides agent banking, and serves clients, with a projected EBITDA for 2021 in more than $5m.
As part of the terms of the agreement, the purchase price for the transaction is €30m in cash.
Most of the management equity earnout compensation, post acquisition, is based on processing volume commitments and hurdles of $100m, $250m, $500m and $1bn of new business volume per month, stated GreenBox POS.
The deal also includes over €6m in reserves with the card schemes of Visa or MasterCard.
With the licenses being passported by TEU into all countries located in the European Economic Area (EEA), GreenBox will be able to onboard any customer in the region.
Due to this acquisition, as a result of TEU’s licensing, GreenBox will become the principal member of Visa and MasterCard for acquiring; principal member of Visa and MasterCard for issuing; principal member of China Union Pay for acquiring; a direct member of SEPA, etc.
The acquisition will allow GreenBox to widen its offerings, including merchant accounts, payment accounts, FX services and a group of other services to prospective European clients.
The deal is pending regulatory approval from the Bulgarian National Bank, where TEU’s licenses are held, following which GreenBox can commence consolidation efforts and onboarding of new clients.
GreenBox POS chairman Ben Errez said: “This is the most significant acquisition to date for GreenBox and propels the Company into the European marketplace. By acquiring Transact Europe, GreenBox can swiftly move to gain market share in the global financial payments space where a void has left opportunity for new market entrants to emerge and dominate.
“Transact Europe represents the perfect acquisition for us to expand our global footprint and continue to deliver sustainable growth for our shareholders. We are looking forward to integrating the Transact Europe team as part of the GreenBox family.”
Transact Europe EAD CEO Vassil Klaklov said: “GreenBox is a natural complement to Transact Europe. Our licenses and infrastructure combined with GreenBox’s suite of solutions, global strategy and technology platform will create a power synergy that can quickly scale in the European market. We look forward to joining the GreenBox team and emerging as a leading global payment solutions company.”