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December 19, 2011

Wirecard buys prepaid card issuing business from Newcastle Building Society

UK-based Newcastle building Society (NBS) has exchanged contracts for the sale of its Pre Paid Cards business (PPC), to electronic payment solutions provider Wirecard Card Solutions. It paid 8.9m ($11.5m), with further earn-out payments estimated at 1.8m ($2.3m) for 2012 and up to 1.2m ($1.5m) for 2013 subject to achievement of financial targets

By Verdict Staff

UK-based Newcastle building Society (NBS) has exchanged contracts for the sale of its Pre Paid Cards business (PPC) to electronic payment solutions provider Wirecard Card Solutions.

Wirecard Card Solutions is a subsidiary of Germany-based Wirecard AG Group. It paid €8.9m ($11.5m) for the acquisition, with further earn-out payments estimated at €1.8m for 2012 and up to €1.2m for 2013 – subject to achievement of financial targets.  

Jim Willens CEO of NBS said:

“This is a significant and positive development for [Newcastle Building Society]. While our PPC business has performed consistently, we needed to thoroughly assess the feasibility of it forming part of our strategy as a traditional building society going forward.”

As part of the acquisition, all 24 of Newcastle’s PPC staff will be transferred over to Wirecard Card Solutions, a newly founded UK subsidiary of the Wirecard group.

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