Completion of Store Financial Services UK Acquisition
Sydney, Dec 1, 2014 AEST (ABN Newswire) - Emerchants Limited (
ASX:EML) (EMCHF:OTCMKTS) announces today that it has completed the acquisition of 100% of the issued capital of Store Financial Services UK Limited (SFUK) from the shareholders of SFUK.
This acquisition delivers Emerchants an established, profitable business in Europe, affiliated with one of the world's premier providers of gift card programs and the ongoing involvement and commitment of SFUK's experienced management team. The deal also provides Emerchants with a platform to launch the reloadable business into Europe, leveraging SFUK's established and profitable non-reloadable business.
In commenting on the completion of the acquisition of SFUK, Mr Tom Cregan, Managing Director of Emerchants, said:
"We are delighted that SFUK will provide Emerchants with a low risk entry option into the European prepaid market. Emerchants has had numerous discussions with potential European customers in the past, and SFUK provides the perfect platform to service those customers in the near term.
Emerchants focus is on creating easy to use payment systems that offer control and flexible reloadable payment applications. We are excited to bring this process to SFUK's business by taking advantage of their existing banking, regulatory and operational relationships and expertise."
Emerchants announced the acquisition of SFUK on 26 September 2014.
Under the Share Sale Agreement, Emerchants agreed to pay $24.9 million, comprising 50% cash and 50% Emerchants shares, for SFUK. The acquisition was funded through a $14 million placement to eligible institutional and sophisticated investors at $0.50 per share and a $12.45 million equity placement to the SFUK vendors at $0.50 per share.
Both the placement and issue of new shares to the SFUK vendors were approved by Emerchants shareholders at its Annual General Meeting on 19 November 2014.
About Emerchants Ltd
Emerchants Ltd (ASX:EML) (OTCMKTS:EMCHF) is a payments solutions provider of prepaid financial card products and services in Australia. By using its proprietary Secure Account Management (SAM) system, the Company provides its clients with innovative financial service payment solutions for reloadable and nonreloadable pre-paid card programs.
Emerchants' proprietary technology, processing capabilities and program management services offers clients more control and flexibility in managing corporate expense programs, funds disbursement, petty cash, per diems, emergency payments, disaster/welfare programs and many other individual and bulk payment scenarios. Emerchants partner with well-established banking institutions and card associations (eftpos, Visa) to ensure card programs are fully compliant, scalable and easy to implement for clients.
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