Net 1 UEPS Technologies Inc UEPS disclosed that it exercised its option to buy the remaining 40 percent of Masterpayment AG, a specialist payment services processor based in Munich, Germany. According to the company, it finalized the earn-out purchase consideration in respect of the transaction concluded in April 2016.
As a result, Net1 now owns 100 percent of Masterpayment, having previously acquired 60 percent of Masterpayment.
Net1 Chairman and CEO Sege Belamant commented, "We believe there is an opportunity to accelerate the wider implementation of Masterpayment's business model across carefully selected markets. We therefore decided to acquire the remaining 40 percent shareholding to ensure that the Masterpayment management team can be completely focused on the implementation of this strategy."
He added, "As part of this transaction, Masterpayment's executive management have committed to five year employment agreements, including variable compensation aligned with the delivery of our strategic plan. We have committed to provide Masterpayment with the additional working capital required to drive the considerable expansion of their business activities over the next eighteen months, and we expect these initiatives to contribute meaningfully to our operating results during the 2018 fiscal year."
The stock ended with a 0.10 percent gain on Thursday.
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