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Wirecard To Acquire 80% Stake In Bejing-based AllScore Payment Services

Wirecard AG (WRCDF.PK), the provider of electronic payment and risk management applications, announced Tuesday that it 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, which is currently controlled in its majority by its founder and CEO Yao Lin and Shanghai Aiwu Investment Management Co. Ltd., led by its Chairman Shirt Yonglei, owner of the Shanghai-listed supermarket-chain Lei Yifen.

After the closing, which is subject to customary and regulatory closing conditions, Wirecard will hold 80 percent of all shares in AllScore.

The acquisition will enable Wirecard expand its global financial platform services with market entry into China, investing in licenses for digital payments.

AllScore Payment Services, founded in 2007, is a local payment service provider owning an attractive license portfolio, including cross-border license. The license portfolio also provides Wirecard with the capability to issue payment cards to consumers and companies in China.

Further, the license portfolio will enable 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.

Meanwhile, Wirecard's international merchants gain access to Chinese consumers and are enabled to accept widely-used digital mobile payment methods and receive settlements in their respective local currency.

The consideration in connection with this transaction comprises cash payments, including a capital increase of AllScore Payment Services, of upto 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.

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