Wirecard, a German financial services and technology company, has agreed to acquire Citi Prepaid Card Services, as part of its strategy to enter North American market.
The takeover is expected to conclude by the fourth quarter of 2016, subject to regulatory approvals and other customary closing conditions. Upon closing of the transaction, the operations of Prepaid Card Services, including its nearly 120 staff, will join Wirecard.
Further, the acquired prepaid card operation will be integrated with Wirecard’s existing global payments platform to expand the features and functionality currently available to their clients across the world.
Wirecard CEO Markus Braun said: "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."
Citi Holdings CEO Francesco Vanni d’Archirafi of said: "This transaction is a positive outcome for our clients and employees of Citi Prepaid Card Services which will become part of an industry leader poised for growth."
Citi Prepaid Card Services launched and successfully managed more than 2,500 programs associated with companies and brands globally.