EML Payments acquires UK fintech for $40.5m

EML Payments acquires UK fintech for $40.5m

EML Payments is bolting onto its growing European business with the purchase of Flex-e-Card Limited (FEC), a UK-based fintech that also operates in Ireland, Poland, Italy, Finland and the UAE.

EML’s European subsidiary executed a share purchase agreement on 17 May to acquire 100 per cent of FEC for £21.6 million ($40.5 million).

The deal will be funded by around $25.5 million in cash reserves and a further $15 million from a debt facility with a major Australian bank.

FEC is expected to generate at least $4 million in EBTDA in the first year of ownership with no working capital input requirement post-close as the business is cash generative.

Shares in the Brisbane-based company have lifted by 5.3 per cent this morning to $2.17, with CEO Tom Cregan highlighting FEC’s revenue metrics and gross margin percentages are very similar to the existing EML business.

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Source: EML Payments acquires UK fintech for $40.5m