Wirecard Expands Its Global Financial Platform Services with Market Entry Into China, Investing in Licenses for Digital Payments

PR81475

ASCHHEIM, Germany, Nov. 5, 2019 /PRNewswire=KYODO JBN/ --

- Controlling stake in Beijing-based Payment Service Provider      

- Unique license portfolio including cross-border license    

- Strong growth potential by supporting Chinese and international companies in

their business inside and outside China    

Wirecard, the global innovation leader for digital financial technology, is

investing in a comprehensive license portfolio for digital payments through an

acquisition in China. Wirecard will gradually acquire all shares in the

Bejing-based AllScore Payment Services. AllScore Payment Services is currently

controlled in its majority by its founder and CEO Mr. Yao Lin and Shanghai Aiwu

Investment Management Co. Ltd.. The framework agreement was signed in Beijing

today. After the closing, which is subject to customary and regulatory closing

conditions, Wirecard will hold 80 percent of all shares in AllScore. A call

option enables Wirecard to acquire the remaining 20 percent of shares after two

years.   

This step underlines Wirecard's strategy to expand its global technology

platform by way of cross-border licenses. In the current industry-wide effort

to enter China, Wirecard is among the first movers in its peer group.   

AllScore Payment Services, founded in 2007, is a local Payment Service Provider

owning an attractive license portfolio and employing a dedicated team of more

than 120 people. The license portfolio enables Wirecard to offer

internationally oriented Chinese merchants local acquiring services,

cross-border acquiring including settlement in their local currency and

innovative digital value added services. Additionally, the international

merchants of Wirecard gain access to Chinese consumers and are enabled to

accept widely-used digital mobile payments methods and receive settlements in

their respective local currency. The license portfolio also provides Wirecard

with the capability to issue payment cards to consumers and companies in

China.   

Markus Braun, CEO at Wirecard: "We are excited to share the news of Wirecard

entering China. The Chinese market represents a tremendous opportunity for

Wirecard. The licenses are a perfect match to the global platform strategy of

Wirecard."   

Yao Lin, CEO, Chairman and Founder of AllScore Payment Service Co., Ltd.: "We

welcome Wirecard to China and are proud that they have selected us to enter the

market, joining in on the efforts of the Chinese Government to open the

financial sector and improve the regulatory environment for market access to

foreign investors. Wirecard's demonstrated history in expanding a global,

digital business and their professional approach to execution, combined with

our local knowledge and licenses make us an ideal combination to serve Chinese

merchants, as well as international clients doing business in China."   

The consideration in connection with this transaction comprises cash payments,

including a capital increase of AllScore Payment Services, of up to EUR 72.4

million until closing. Subject to customary closing date account adjustments

the minimum payment will amount to EUR 38.6 million. Furthermore, an earn-out

payment of up to EUR 16.7 million has been agreed to, subject to EBITDA targets

in the fiscal year 2020. Wirecard holds a call option to acquire the remaining

20 percent of shares after two years for up to EUR 20.2 million, subject to

post-closing EBITDA targets.

For fiscal 2020, Wirecard projects a low single-digit EBITDA contribution in

EUR after integration costs. The integrated company will generate more than EUR

35 million of EBITDA in 2021 and an EBITDA in excess of EUR 50 million in 2022.

More information on ir.wirecard.com:

Ad hoc announcement dated 5 November 2019   

ISIN DE0007472060   

Reuters: WDI.GDE   

Bloomberg: WDI GY  

About Wirecard:

Wirecard (GER:WDI) is one of the world's fastest growing digital platforms in

the area of financial commerce. We provide both business customers and

consumers with a constantly expanding ecosystem of real-time value-added

services built around innovative digital payments by using an integrated B2B2C

approach. This ecosystem concentrates on the areas payment & risk, retail &

transaction banking, loyalty & couponing, data analytics & conversion rate

enhancement in all sales channels (online, mobile, ePOS). Wirecard operates

regulated financial institutions in several key markets and holds issuing and

acquiring licenses from all major payment and card networks. Wirecard AG is

listed on the Frankfurt Stock Exchange (DAX and TecDAX, ISIN DE0007472060).

Visit us on www.wirecard.com, follow us on Twitter @wirecard and on Facebook

@wirecardgroup.

Wirecard contact:   

Wirecard AG    

Iris Stoeckl    

Tel.: +49 (0) 89-4424-1424    

iris.stoeckl@wirecard.com   

http://www.wirecard.com    

SOURCE: Wirecard