GreenBox Announces Acquisition of Transact Europe, a Principal Visa and Mastercard Member
July 19 2021 - 7:31AM
GreenBox POS (NASDAQ: GBOX) ("GreenBox" or the "Company"), an
emerging financial technology company leveraging proprietary
blockchain security to build customized payment solutions today
announced it has entered into a binding MOU to purchase
Transact Europe Holdings OOD. Transact Europe Holdings OOD is
the single entity shareholder of Transact Europe EAD.
Transact Europe EAD (TEU) is an EU regulated
electronic money institution headquartered in Sofia Bulgaria. TEU
is a Principal Level Member of Visa, a Worldwide Member of
MasterCard, and a Principal Member of China UnionPay. In addition,
TEU is part of the direct SEPA program. With a global footprint,
proprietary payment gateway and technology platforms, TEU offers a
comprehensive portfolio of services, and decades of industry
experience. TEU provides complete payment solutions by
offering acquiring, issuing of prepaid cards and agent
banking, serving hundreds of clients with
a projected EBITDA for 2021 in excess of USD $5m.
Under the terms of the agreement, the purchase
price for the transaction is EUR 30M in cash with the majority of
management equity earnout compensation (post acquisition) based on
processing volume commitments and hurdles of $100M, $250M, $500M
and $1B of new business volume per month. Included in the
acquisition is over 6M Euro in reserves with the card schemes
(Visa/MasterCard). TEU has successfully passported its licenses
into all countries in the European Economic Area (EEA) which will
allow GreenBox to onboard any customer within the EEA
region.
With this acquisition, GreenBox will have the
following capabilities as a result of TEU’s licensing:
- Principal Member of Visa and
MasterCard for Acquiring
- Principal Member of Visa and
MasterCard for Issuing
- Principal Member of China Union Pay
for Acquiring
- Full Electronic Money Institution
license (EMI license)
- A direct member of SEPA
- Able to issue and offer EUR
IBANs
- Passport of licenses to all
EEA Countries
- Waiver to continue boarding UK
clients in 2021
- Software included to run licenses
and clients
- Proprietary PCI Level 1 Payment
Gateway
Upon completion, the European acquisition would
reduce the impact of certain issuing and acquiring challenges faced
by GreenBox during its growth in the U.S. market.
The acquisition will allow GreenBox to
expand its offerings, including merchant accounts, payment
accounts, FX services and a host of other services to
prospective European clients. It will also provide GreenBox the
opportunity to offer its domestic clients expansion into Europe,
greatly enhancing value for its existing and prospective U.S. based
clients.
Furthermore, Transact Europe holds a waiver from
the UKFCA under Brexit to continue business in the UK for the
remainder of 2021 until the needed requirements, which are expected
to be released in October, are defined. GreenBox intends to achieve
the required UK licensing in order to continue onboarding and
servicing customers in the UK.
The acquisition is pending regulatory approval
from the Bulgarian National Bank, where TEU’s licenses are held,
after which GreenBox can begin consolidation efforts and onboarding
of new clients.
GreenBox has already secured the services of
seasoned European based industry specialists to spearhead the
European expansion to optimize all facets of the combined
group.
“This is the most significant acquisition to
date for GreenBox and propels the Company into the European
marketplace,” said Ben Errez, Chairman of GreenBox POS. “By
acquiring Transact Europe, GreenBox can swiftly move to gain market
share in the global financial payments space where a void has left
opportunity for new market entrants to emerge and dominate.
Transact Europe represents the perfect acquisition for us to expand
our global footprint and continue to deliver sustainable growth for
our shareholders. We are looking forward to integrating the
Transact Europe team as part of the GreenBox family.“
Vassil Klaklov, CEO of Transact Europe EAD,
commented, “GreenBox is a natural complement to Transact Europe.
Our licenses and infrastructure combined with GreenBox’s suite of
solutions, global strategy and technology platform will create a
power synergy that can quickly scale in the European market. We
look forward to joining the GreenBox team and emerging as a leading
global payment solutions company.”
About GreenBox POS
GreenBox POS (NASDAQ: GBOX) is an emerging
financial technology company leveraging proprietary blockchain
security to build customized payment solutions. The Company's
applications enable an end-to-end suite of turnkey financial
products with fraud detection technology, improving the efficiency
of handling large-scale commercial processing volumes for its
merchant clients. For more information, please visit the Company's
website at www.greenboxpos.com.
Forward-Looking Statements Disclaimer
This release contains forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933, as
amended and Section 21E of the Securities Exchange Act of 1934, as
amended. All forward-looking statements are inherently uncertain as
they are based on current expectations and assumptions concerning
future events or future performance of the Company. Readers are
cautioned not to place undue reliance on these forward-looking
statements, which are only predictions and speak only as of the
date hereof. In evaluating such statements, prospective investors
should review carefully various risks and uncertainties identified
in this release and matters set out in the Company's SEC filings.
The forward-looking events and circumstances discussed in this
release may not occur and could differ materially as a result of
known and unknown risk factors and uncertainties affecting the
Company, including risks regarding the ability of the parties to
close the transaction, receipt of required regulatory consents, and
risks related to the Company’s ability to meet the UK requirements.
These risks and uncertainties could cause the Company's actual
results to differ materially from those indicated in the
forward-looking statements.
Investor Relations ContactMark SchwalenbergMZ
Group - MZ North
America312-261-6430GBOX@mzgroup.uswww.mzgroup.us
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