Wirecard AG, a global software and IT specialist for outsourcing and white label solutions for payment processing and issuing products, has announced that it has acquired 100% of MyGate Communications (Pty) Ltd (MyGate), a South African payments service provider.
"The acquired PSP business along with its integration into Africa’s leading acquiring banks and the Visa network offers enormous value added for Wirecard’s regional product portfolio and supplements the existing product portfolio offered by our subsidiary Wirecard South Africa. This merger speeds up our expansion into Africa's international markets and offers further potential to leverage synergies."Wirecard
MyGate has been lauded as a leading payment service provider (PSP) in Afrika. The South African FinTech company has recently been voted as the best online payment gateway in Africa for 2016.
Based in Cape Town, South Africa, MyGate currently employs 21 people. It enables merchants across the continent to accept different e-commerce payment options, in particular online card payments.
Wirecard agreed with MyGate on a purchase price of $24 million (EUR 23,1 million). This consists of "an upfront payment of $19 million (EUR 18,2 million) and earn out payments of up to $5,2 million (EUR 4,9 million)" Wirecard said in a statement.
MyGate is expected to generate an EBITDA of $2,1 million (EUR 2,0 million) for the 2017 calendar year.