One of the leading providers of payment services to the foreign exchange industry, SafeCharge International Group Ltd (LON:SCH), has detailed its latest acquisition. The international provider of payments services, risk management and IT solutions for online businesses, today announced the acquisition of 3V Transaction Services Limited (“3V”).
SafeCharge International Group Ltd (LON:SCH) will acquire 100% of 3V Transaction Services for €14.5 million, with €11.6 million payable on completion, and the balance payable over the next three years. The acquisition is expected to be concluded in January 2015.
SafeCharge’s Chief Executive, David Avgi, said in the company’s announcement, “3V enables us to gain fast-track entry into the rapidly expanding prepaid card issuance vertical and will provide the foundation of what will become a significant new division within SafeCharge (LON:SCH).”
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The firm was established in Dublin in 2004 and specializes in issuance, processing and management of virtual cards, gift cards and virtual vouchers. 3V’s fiscal 2013 book reveals close to €2.9 million in revenues and a net loss of €3.2 million with net assets totaling €2.6 million. The business is expected to turn cash positive within a year.
The acquisition will be financed from SafeCharge’s existing cash resources.
This marks the second acquisition made by the SafeCharge International Group Ltd (LON:SCH) announced this December. The company acquired CreditGuard, a level 1 certified payment service provider with white labeling capabilities for $8 million.
The deal with 3V will enable SafeCharge to make use of its approval for Issuing Activity by MasterCard Europe. After the firm becomes a Principal Member, SafeCharge will be able to issue pre-paid, co-branded MasterCard products.
The move has provided SafeCharge’s clients the opportunity to deliver their clients a new withdrawal method – transferring funds from their accounts to a pre-paid card.