Osborne Clarke has advised Wirecard AG on the acquisition of all shares of MyGate Communications (Pty) based in Cape Town, South Africa.

The parties agreed upon a purchase price of EUR 23.1 mn, consisting of an upfront payment of EUR 18.2 mn and earn out payments of up to EUR 4.9 mn.

MyGate is a leading payment service provider (PSP) in Africa. The company operates one of Africa’s largest and fastest growing online payment gateways and was recently voted the best online payment gateway in Africa in 2016.  MyGate is expected to generate an EBITDA of EUR 2.0 mn for the full calendar year 2017.

The acquired PSP business with its integration into leading African acquiring banks provides significant additional value to Wirecard’s product offering in the region. Whereas the existing business of Wirecard South Africa will concentrate on card issuing, the addition of a wide range of e-commerce solutions that MyGate provides will enable Wirecard to provide the African market with a one-stop merchant solution for all their payment requirements.

A team lead by Corporate Partner Dr Björn Hürten advised Wirecard on the transaction. The team also included Efthimios Detsikas and Annette Simon. The firm also coordinated its South African best friend law firm Werksmans. Osborne Clarke regularly advises Wirecard.