Syncapay has announced that it has bought Wirecard North America, marking another page in the story of the collapse of the scandal-ridden former FinTech giant.
Wirecard imploded this summer after a suspected multi-billion dollar fraud was unearthed. Since then the company, which was once hailed as one of Germany’s biggest FinTech success stories, has seen several members of its top brass be arrested or be sought after by the authorities investigating the global scheme.
Following the payment processing business filing for insolvency in June, the company has been picked apart and sold. FinTech Paynetics acquired the corporate payout card portfolio of Wirecard UK and Ireland in early October after Railsbank signed a term sheet to acquire Wirecard’s UK business in August. In September, we reported that identity verification company IDnow planned to buy Wirecard Communication Services. At roughly the same time, the news broke that a team from Wirecard’s innovation labs would join Berlin-based FinTech finleap.
Now it seems as if the time has come to reveal the fate of Wirecard North America. Wirecard Acquiring & Issuing GmbH, a fully owned subsidiary of Wirecard AG, has sold Wirecard North America to Syncapay, a US holding company focused on high potential payment solutions.
While the deal has been announced, the transaction is still subject to regulatory approval. Despite the scandals blemishing the mother company, the two parties still maintained that “Wirecard North America is one of the market leaders in the US for the issuing of compensation, disbursement, consumer incentive and refund cards.”
“We are very happy with this solution for Wirecard North America. With this transaction we have achieved an important milestone in our sales efforts in the best interest of the creditors of Wirecard AG,” said the insolvency administrator Dr Michael Jaffé.
The acquisition is backed by the private investment management firm Centerbridge Partners L.P., which is making a majority equity investment in Syncapay, and existing Syncapay shareholders Bain Capital Ventures, Silversmith Capital Partners, MissionOG, and NYCA.
The deal marks Syncapay’s second acquisition. It previously bought daVinci Payments in 2017.
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