Canadian payments firm Mint has agreed to offload its payroll card portfolio in the UAE in a deal valued at AED102.75m ($27.9m).
The Canadian firm executed the deal through its subsidiaries Mint Middle East and Mint Gateway for Electronic Payments (collectively Mint UAE.
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The name of the buyer was not disclosed, other than the fact that the buyer is a UAE-based payroll disbursement and card provider.
“The agreement provides for a migration period of approximately nine months from the Closing Date and includes an obligation of Mint UAE to deliver a financial performance bank guarantee in connection with the Purchase Price and customary representations, warranties, indemnities and covenants typical for a transaction of this nature,” Mint said.
As per eth agreement, Mint UAE has already received an initial consideration of AED82.75m after securing third-party approvals and the completion of its diligence by the buyer.
It is also entitled to a deferred consideration of up to AED20m depending on the card portfolio migration’s success.
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By GlobalDataEven after the deal, Mint UAE will continue to offer payment card processing and prepaid card products across verticals like gift, prepaid, and multi-currency.
The transaction awaits the nod of the TSX Venture Exchange and shareholders.
Mint CEO Vishy Karamadam said: “Mint UAE’s platform straddles the entire payment ecosystem of issuing, processing, payment gateway and merchant management services.
“This Transaction will enhance the financial position of the Company and complements the business strategy.”
