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Syncapay picks up Wirecard’s North American unit
Posted on Friday, 23 October 2020 14:33
Syncapay has agreed terms over a purchase of the North American business of German payment processor and financial services provider Wirecard.
No financial details of the transaction, which still requires the green light from regulatory bodies, have been disclosed at this time.
Dr Michael Jaffe, insolvency administrator for the vendor, said the move was in the best interests of the firm’s creditors.
Centerbridge Partners also participated in the deal as a buyer and is taking a majority holding in Syncapay, which is conducting the deal via its DaVinci Payments subsidiary, as a consequence.
Reports of a sale of Wirecard North America emerged in June, when the target sought to distance itself from its parent, which had filed for insolvency.
The business said it was on the lookout for a buyer and noted that it is a separate legal and business entity from Wirecard AG, while also describing itself as “a self-sustaining entity that is substantially autonomous” from its parent.
It added that its German owner had no impact on decision-making and financials at the company.
Back in June, Wirecard auditor EY said it had discovered a hole in the group’s finances which strongly indicated fraud at the firm.
This revelation was followed by the arrest of chief executive Markus Braun on suspicion of false accounting and market manipulation.
Wirecard North America has now rebranded itself under the name North Lane Technologies.
Completion of the acquisition is expected to occur during Q4 2020.
The largest deal targeting a provider of data processing, hosting and related services to have been announced worldwide during 2020 was worth USD 18.50 billion, according to Zephyr, the M&A database published by Bureau van Dijk.
That transaction saw Teladoc Health agree to purchase Livongo Health in early August.
Other companies in the sector to have been targeted during the year to date include the likes of E*Trade Financial, Visma and 58.com.
© Zephus Ltd