EML Payments Limited (ASX:EML) acquires Perfectcard DAC

Finally, EML (ASX:EML) acquired 74.86 per cent of Perfectcard DAC, Ireland’s first authorised eMoney institution and a FinTech company that provides incentive and corporate expense solutions. The total maximum acquisition price was decided as €6,023,841 (A$9,561,652) that comprised of an Upfront cash payment of €2,722,743 (A$4,321,814) which was paid on close from EML’s existing cash balances, and €250,000 (A$396,825) is held by EML (ASX:EML) pending satisfactory completion of representations and warranties for up to six months post close. The transaction is Earn-out based on 10x average EBTDA generated in CY19 and CY20, capped at €3,051,098 (A$4,843,013). The Earnout will be payable 82 per cent in cash and 18 per cent in EML (ASX:EML) shares with a price of A$1.36.

It has been decided that Perfectcard will be acquired with €1.5 million in net assets and it is expected that Perfectcard will be generating EBTDA of A$400k – A$600k in FY19 after first-year integration costs to terminate processing agreements, reissue plastic gift card stock and integrate with EMLs processing engine. Soon, EML (ASX:EML) will provide earnings guidance for the next financial year around the time of AGM and contributions from this acquisition will be factored into any guidance that it will provide at that time. Further, EML (ASX:EML) will consolidate Perfectcard into its financial results from 4 July 2018 onwards. The main rationale behind the acquisition is that now it will allow EML (ASX:EML) to become an Issuer, payment processor and program manager across the European Union. It will provide EML (ASX:EML) with capability, cost and revenue synergies. The stock was trading at $1.47 without any movement (as on 5 July 2018; 03:15 PM AEST).


Disclaimer

The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkine.com.au and associated websites are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). The information on this website has been prepared from a wide variety of sources, which Kalkine Pty Ltd, to the best of its knowledge and belief, considers accurate. You should make your own enquiries about any investments and we strongly suggest you seek advice before acting upon any recommendation. Kalkine Pty Ltd has made every effort to ensure the reliability of information contained in its newsletters and websites. All information represents our views at the date of publication and may change without notice. To the extent permitted by law, Kalkine Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services. There may be a product disclosure statement or other offer document for the securities and financial products we write about in Kalkine Reports. You should obtain a copy of the product disclosure statement or offer document before making any decision about whether to acquire the security or product. The link to our Terms & Conditions has been provided please go through them and also have a read of the Financial Services Guide. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s