UK-based cross-border payments company WorldRemit has inked a cash and stock deal to acquire Africa-focused, app-based remittance company Sendwave.
The deal is reportedly worth more than $500m, and the combined company will be valued at over $1.5bn, Bloomberg reported citing people aware of the matter.
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Sendwave, through this deal, aims to expand its instant, low-fees digital remittance service across Asia and Latin America.
The firm will continue to operate independently.
The Chime-operated company will retain its brand, management, partners, staff, and all its mobile applications.
Sendwave CEO Will Fogel said: “’Sendwave-ing’ money is as easy as sending a text – one less worry for the hard-working and generous diaspora communities that we serve.”
“We are eager to combine WorldRemit’s wide reach with our recipe for success in areas like Kenya, Ghana, and Nigeria.”
In the past one year ending June 2020, WorldRemit and Sendwave have collectively sent nearly $7.5bn in transfers and earned about $280m in revenue.
Post-acquisition, the combined company will have more than 100 send licences, including for all US states.
It will have access to a broad network spanning over 50-150 send or receive countries, and 8,000 payment corridors, serving a $715bn remittances market.
By acquiring Sendwave, WorldRemit will be able to expand its payment services across Africa.
WorldRemit CEO Breon Corcoran said: “WorldRemit has one of the broadest and most accessible networks for money transfers globally. Combining it with Sendwave, which offers instant, no/low-fee and fully digital payments from North America and Europe to Ghana, Nigeria, Senegal and East Africa, addresses customer needs for fast and secure digital payments – especially given today’s travel restrictions and economic turmoil.”
The acquisition is expected to complete in the fourth quarter of 2020, subject to regulatory approvals.
