Wirecard Dismantles Asia Empire
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Following a spectacular collapse, Wirecard is disposing of its assets in the region, leaving only its business in India. The insolvent German firm has agreed to sell its legal entities in the Philippines, Malaysia, Hong Kong, and Thailand as well as the company’s regional data warehouse in Singapore to Nomu Pay.
The deal includes Wirecard’s clients, licenses and more than 120 staff. The acquisition will help the payments firm, backed by Amsterdam-based venture capital company Finch Capital build an e-commerce and payments company in Asia, the report said.
The report did not specify the size of the deal but noted it was below the €200 million Wirecard paid Citi in 2017 to acquire its merchant clients in 11 Asia-Pacific countries.
Wirecard sold its unit in Indonesia to a local technology holding company in a deal that included 360 staff and operations in Malaysia too. The company has already divested operations in the Americas, U.K., and continental Europe.
Wirecard was at the center of one of the region’s biggest corporate accounting scandals in recent years, having admitted that €1.9 billion ($2.25 billion) is missing from its financial accounts. The collapsed German fintech’s sacked operating chief went to the extreme – and adventurous – lengths to bamboozle auditors, according to a German report.
In October 2020, the Monetary Authority of Singapore (MAS) ordered Wirecard Singapore to cease payment services in the country and to return all customers’ funds.
Questions & Answers
Q.Which specific Wirecard entities and assets are being sold to Nomu Pay in this deal?
Which specific Wirecard entities and assets are being sold to Nomu Pay in this deal?
Nomu Pay is acquiring Wirecard's legal entities in the Philippines, Malaysia, Hong Kong, and Thailand. The deal also includes the company’s regional data warehouse located in Singapore, along with Wirecard's clients, licenses, and over 120 staff.
Q.What was the approximate value of this current deal compared to Wirecard's past acquisitions?
What was the approximate value of this current deal compared to Wirecard's past acquisitions?
The report did not specify the exact size of this deal. However, it noted the current sale was below the €200 million Wirecard paid Citi in 2017 to acquire its merchant clients across 11 Asia-Pacific countries.
Q.Where else has Wirecard sold off its operations besides the recent Asian deals?
Where else has Wirecard sold off its operations besides the recent Asian deals?
Wirecard has already divested its operations in the Americas, the U.K., and continental Europe. Also, its unit in Indonesia, which included 360 staff, was sold to a local technology holding company.