November 10, 2019 / 10:38 PM / a month ago

Australia's EML Payments to buy Prepaid Financial Services for $290 million

(Reuters) - Australia’s EML Payments (EML.AX) said on Monday it would buy London-based Prepaid Financial Services Ltd, valuing it at about A$423 million ($290.01 million).

The payment solutions provider said the deal would also comprise an additional earn-out component of up to A$103 million, conditional on Prepaid Financial achieving certain earnings targets.

The deal will be funded through an equity raising composed of an entitlement offer to raise about A$183 million, and an institutional share placement to raise A$67 million, the company said in a statement.

Prepaid Financial Services, which operates in 24 countries, provides e-wallets and digital banking software among other services.

EML added that the acquisition would generate synergies of about A$6 million a year.

Prepaid Financial Services was not available for comment outside business hours.

Reporting by Shriya Ramakrishnan in Bengaluru; Editing by Peter Cooney

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