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(Alliance News) - WAG Payment Solutions PLC on Tuesday said it has exercised its call option to acquire an additional 18% stake in JITpay GmbH.
WAG Payment Solutions, known as Eurowag, is a London-based company that processes toll and fuel payments for trucks around Europe. JITpay is a Braunschweig, Germany-based payment service provider specialised in digitalising billing, receivables management and financing for the logistics industry.
Eurowag said the additional share will be bought for a consideration of EUR25.7 million, of which EUR6.5 million will be used as primary capital.
Under the option being exercised, Eurowag has agreed to acquire the additional stake from JITpay's founders Volksbank eG Braunschweig Wolfsburg on a pro rate basis. Eurowag added that the remaining 72% stake will be held by existing shareholders.
Nevertheless, the London-based firm has the option to acquire the remaining 72% stake from 2025 onwards.
This comes after Eurowag entered a strategic partnership with JITpay back in September of last year when it acquired just under 10% for an initial EUR14.3 million.
Eurowag said: "The investment will further enhance Eurowag's platform capabilities by adding industry specific invoice discounting and billing management capabilities. JITpay is active in Germany, Poland, the Netherlands, Czechia, Slovakia, Slovenia, Lithuania, Latvia and Spain, and has several active strategic partnerships with Europe's largest freight exchanges.
"This partnership will strengthen Eurowag's presence in Germany, the largest trucking market in Europe, with JITpay's fast-growing base of over 2,150 customers, and further expands the group's vast data lake."
Shares in Eurowag were up 2.3% at 90.00 pence each in London on Tuesday morning.
By Sabrina Penty, Alliance News reporter
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