The break up of the scandal-ridden Wirecard empire continues, with the sale of its North American business to Syncapay.
Wirecard North America is one of the market leaders in the US for the issuing of compensation, disbursement, consumer incentive and refund cards and is the second major acquisition of Syncapay after the acquisition of daVinci Payments in 2017. The firm has processed over $75 billion in payments having been acquired from Citi in 2016 for €185 million. It has around 200 staff.
Financial terms of the transaction were not disclosed.
"We are very happy with this solution for Wirecard North America. With this transaction we have achieved an important milestone in our sales efforts in the best interest of the creditors of Wirecard AG.", says the insolvency administrator Dr Michael Jaffé.
The acquisition is backed by the private investment management firm Centerbridge Partners L.P., which is making a majority equity investment in Syncapay, and existing Syncapay shareholders Bain Capital Ventures, Silversmith Capital Partners, MissionOG, and NYCA.
The business will be combined with daVinci payments and rebranded as North Lane Technologies.
The offloading of the prized North American unit is the latest in a succession of blows to the remnants of the giant German processor, which filed for insolvency following the discovery of a $1.9 billion black hole in its accounts.
Other units to have gone under the hammer include Wirecard's Brazillian subsidiary, which was sold to PagSeguro, the acquisition of the Romanian business by Sibs, Railsbank's takeover of Wirecard card Solutions in the UK, Change Financial's £7.8 bid for the Australian and New Zealand outlet, IDnow's buy out of the firm's communications business, and the recent Paynetics' acquisition of the UK and Ireland corporate cards portfolio.
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