Railsbank’s acquisition of Wirecard’s UK business has entered a new phase with the two parties having signed a term sheet agreement.
The news comes as Wirecard Card Solutions officially begins the processes of winding down the business. The deal is expected to close in November.
The news about the deal was originally broken by Sifted last week, but now it seems as if the negotiations have taken another step forward with the signing of the term sheet.
The term sheet agreement means that Wirecard will sell its card technology and associated assets in the UK and to effect the transfer of client relationships and certain employees to the UK-head quartered global Banking-as-a-Service platform Railsbank.
The deal also ensures job security for transferred employees, but no details about the price for the company were disclosed.
“In planning the future of the company, one of our key priorities continues to be that our valued customers get the best possible outcome,” said Tom Jennings, managing director of Wirecard Card Solutions.
“We believe that our solvent wind-down proposal, including the proposed sale of assets to Railsbank, will achieve that key priority. Our hope is that our programme managers will support our proposal and we can move forward in a positive way for all parties. I would like to thank our customers for their ongoing support as well as Mastercard and Visa for their help in making this transition as seamless as possible.”
Nigel Verdon, CEO and co-founder of Railsbank, added, “We are delighted to have come to this agreement with Wirecard Card Solutions and thank its team for working positively with us during the process. At the end of the day, customer and team needs are our priority. The Railsbank team will conscientiously work on ensuring customers, programme managers and team members have a seamless transfer to their new home.”
Wirecard filed for insolvency in June after $2.1bn of its finances were revealed to be missing. It was later revealed that the money may have never existed in the first place.
Authorities are now investigating an alleged worldwide multi-billion fraud.
Since the collapse of the company in June, several members of the company’s executive leadership have either been arrested or are being sought after by international authorities.
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