Global digital platform provider Wirecard has announced a deal to acquire China-based payment service provider (PSP) AllScore Payment Services.
Subject to regulatory conditions, the deal will see Wirecard hold 80% of all shares in AllScore Payment Services with a call option available after two years for the remaining 20%
Markus Braun, CEO at Wirecard commented: “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.”
The acquisition represents Wirecard’s ambitions to enter the Chinese market whilst also complementing the firm’s strategy to unlock more potential for its global platform through cross-border licenses.
A capital increase of AllScore of up to EUR 72.4 million will be included until closing; the deal is predicted to generate more than EUR 35 million of EBITDA in 2021 and an EBITDA in excess of EUR 50 million in 2022.
AllScore Payment Services was founded in 2007 is a local PSP; Wirecard will be able to offer internationally oriented Chinese merchants local acquiring services and cross-border acquiring.
Furthermore, international merchants that utilise Wirecard will be able to access Chinese consumers and can accept country specific digital mobile payments methods and receive settlements in their respective local currency.
Yao Lin, CEO, Chairman and Founder of AllScore Payment Service added: “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.”