Investment firm Australasia Consolidated Ltd. has acquired eMerchants Holdings Pty Ltd., an Australian provider of prepaid financial services, for approximately AU$28 million (US$30 million or 21 million euros).
The Perth-based company intends to raise a minimum of AU$10 million through share placement to new and existing shareholders to fund the transaction, according to a filing it made with the Australian Stock Exchange. It also intends to use the funds to develop eMerchants’ sales and marketing abilities and applications designed to help the firm grow its business.
With a 28% market share, Brisbane-based eMerchants is Australia’s largest provider of prepaid cards, including reloadable cards and single-store gift cards, according to market research firm Euromonitor International.
Under the deal’s terms, Australasia will issue 75 million of its shares valued at AU$152.5 million to eMerchants’ vendors and an additional AU$2.5 million in cash, according to the filing.
EMerchants says it has authorized more than 1 million transactions, has issued more than 1 million cards and has successfully settled transactions valued at more than AU$150 million since forming in 2001.
Primary products for eMerchants include cards for corporate travel and entertainment, staff incentives and rewards, gifts, and loyalty acknowledgment.
John Battley, who founded eMerchants, would join the Australasia board as an executive director, according to the filing.
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