Wirecard expands its global financial platform services with market entry into China, investing in licenses for digital payments

Aschheim (Munich) (ots) -

- 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

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
ISIN DE0007472060
Reuters: WDI.GDE
Bloomberg: WDI GY

Original-Content von: Wirecard AG, übermittelt durch news aktuell