29/06/2016: Wirecard AG announces its market entry into North America by the acquisition of Citi Prepaid Card Services

Citi Prepaid Card Services, with its global footprint, launched and successfully managed over 2,500 programs associated with top companies and brands across the world.

Clients are leading telecommunication service providers, health sciences companies, global IT and electronics manufacturers, internet and consumer goods corporations as well as public sector clients.

CEO Markus Braun: "This acquisition extends Wirecard AG's global presence into the North American market. On an operating level, we look forward to sustainably enriching their existing product portfolio via our innovative issuing solutions. We look forward to working together with a highly experienced management team and staff who will contribute their dedicated knowledge with the implementation of complex corporate solutions.”

Highlights:

  • Global expansion with market entry U.S. 
  • Growth opportunities due to cross-selling effects
  • Leading position in institutional funded prepaid card issuing with more than 2,500 client programs launched
  • Segment leading corporate clients 
  • Highly experienced management team with extensive industry network
  • 120 employees
  • Headquartered in Conshohocken (Philadelphia)


Financials: Financial terms of the transaction were not disclosed

Estimates 2017: 

  • EBITDA margin 2017 approx. 20%
    EBITDA contribution 2017 > USD 20 mn (before integration costs)
    One-off integration costs in 2017 of USD 5 mn
  • Financing through cash and committed bank loans
  • Closing expected as early as Q4 2016 (subject to obtaining regulatory approvals and other customary closing conditions)

Business and segment overview

The customer portfolio of the acquired business consists of leading telecommunication service providers, health sciences companies, global IT and electronics manufacturers, internet and consumer goods corporations as well as public sector clients. The portfolio is largely comprised of incentive and compensation cards as well as corporate disbursement programs.

Growth potential:

  • High cross selling potential
  • Expansion of customer portfolio
  • Business expansion beyond Issuing 


The acquired prepaid card business will benefit from integrating with Wirecard's existing global payments platform to expand the features and functionality currently available to their clients around the world.