Next Group, a US-based technology company, has signed a letter of intent (LOI) to acquire Azugroup, a manufacturer and supplier of plastic/paper debit, credit, gift card and financial cards.
According to the terms of the LOI, Next Group will acquire 100% of the unencumbered rights and assets of Azugroup in exchange for its own shares.
After completion of the proposed transaction, Antonio Faranda, president and majority shareholder in Azugroup, will assume the responsibility of president of Next Group.
Commenting on the deal, Next Group chairman and CEO Arik Maimon said: “Azugroup’s production, technology, and logistics capabilities are anticipated to lower Next Cala, CUENTAS, and MIO product costs significantly, providing for additional profits and the ability to distribute our financial products at lower cost to consumers.
“These significantly lower costs will enable us to reach millions of consumers with our products.”
Faranda said: “Azugroup has developed a strong position in the European market, and the proposed transaction with Next Group Holdings will allow our companies to accelerate expansion across the US market.”
Azugroup, through its wholly-owned Italian subsidiaries generated €13.2m in revenue during 2016. Financial terms of the transaction have not been revealed.