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Wirecard North America seeks buyer after parent firm files insolvency

Wirecard North America seeks buyer after parent firm files insolvency
Wirecard North America seeks buyer after parent firm files insolvency

Wirecard North America Inc, the independent business unit of Wirecard AG, has reportedly announced that it has put itself up for sale, just a week after the parent organization filed for insolvency.

Wirecard North America said in the statement that an investment bank is conducting the sales process. The company was previously operated under the brand name of Citi Prepaid Card Services. Later, Wirecard AG acquired the firm and renamed it as Wirecard North America.

Since then, Wirecard North America has been operating as a separate, independent, and self-sustaining unit of Wirecard AG. The parent company will not be having any control over financials and decision-making at Wirecard North America.

According to sources familiar with the knowledge of the matter, the company will safeguard its cardholders and client funds at independent, well-capitalized US and Canadian partner banks named Fifth Third Bank, Peoples Trust Company, and Sunrise Banks with verifiable documentation of accounts.

Speaking on which, Seth Brennan, Managing Director at Wirecard North America said that Wirecard North America will continue to operate without any disruption to cardholders and clients. The firm’s independent, strong cash flow and established financial position has enabled the company to operate the business on a completely standalone basis.

Mr. Brennan added the company’s partners and customers would remain its top priority, while the North America team would ensure that there is zero interruption in its day-to-day operations.

For the record, Wirecard North America Inc. is one of the leading companies in a payments technology, managing employee, customer, and, corporate payouts and payments across the Fortune 500.

In the last week, the German payment company Wirecard AG filed for insolvency after the high profile  fraud that resulted in the arrest of its former Chief Executive. While talking about the remarkable downfall of the company once considered as a renowned European tech champion, Wirecard said in a statement that it faced ‘over-indebtedness’ and ‘impending insolvency’.

Source Credit - https://business.financialpost.com/pmn/press-releases-pmn/business-wire-news-releases-pmn/wirecard-north-america-inc-pursues-acquisition

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Nandita Bhardwaj

Nandita holds a management degree with specialization in marketing, and boasts of a short-term experience in the field of recruitment. Following her passion for writing however, she decided to pursue a career in the field of content development. Presently, Nandita pens down news pieces for newsorigins.com, spanning the verticals of business, finance, and technology.