“Over the last couple of years we had quite a few companies wanting to acquire MyGate. We were looking for the right payment partner that could help accelerate our strategy across Africa and when Wirecard approached us it became apparent very quickly that they were the perfect fit,” said MyGate MD Dan Edmiston in an interview with Ventureburn.
Edmiston also commented on whether or not core management staff would still be in place.
“All of the management including myself are staying. Our staff are some of the most experienced online payment specialists in Africa and this is a very important aspect of our growth strategy and value proposition to merchants.”
MyGate is recognised as one of SA’s largest growing payment gateways and was voted as the best in its industry in Africa last year which is a testament to why it was bought for EUR€23.1-million.
Wirecard takes on Africa by acquiring MyGate Communications
The purchase price was however split into an upfront payment of EUR€18.2-million and earn-out payments of up to EUR€4.9-million.
According to a press release by Wirecard AG, MyGate is expected to generate EUR€2-million in earnings before interest, tax, depreciation and amortisation.
This acquisition provides massive value to Wirecard’s regional product portfolio since MyGate was integrated into various financial services as well as Visa’s network. Acquiring MyGate also supplements Wirecard’s existing product portfolio offered by its subsidiary Wirecard SA.
“This merger speeds up our expansion into Africa’s international markets and offers further potential to leverage synergies. In future, African merchants will receive a comprehensive payment solution along the entire value-added chain from a single source,” mentioned a Wirecard representative.
Wirecard’s IP-based payment and risk-management solutions will also benefit the acquired business which is expected to expand with additional value-added services.