EML Payments has negotiated a EUR105 million discount on a previously agreed deal to acquire Prepaid Financial Services, as the Covid-19 outbreak reshapes the economic landscape.
Australia's EML in November agreed a €253.8 million deal to acquire 100% of the Irish payments group, plus an earn-out component of up to £55 million.
In a letter to investors, the firm cited "economic realities" as its primary reason for restructuring the deal.
Under the new arrangement, EML will pay EUR147.5 for PFS, knocking EUR105 million off the previous price tag. The earn out will remain in place.
“The board of EML was committed to seeking a conclusion to the transaction, but on improved terms reflecting the economic reality of Covid-19 and the need to have a strong balance sheet with significant cash on hand and nil net debt,” says EML in a statement. “The parties have worked collegially to re-structure the transaction in order to best position the go-forward combined business.”