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.