Last checked at 16 Dec 2011 07:41
NEWCASTLE BUILDING SOCIETY HAS EXCHANGED CONTRACTS FOR THE SALE OF ITS PRE PAID CARDS' BUSINESS TO WIRECARD CARD SOLUTIONS LIMITED, A SUBSIDIARY OF WIRECARD AG
Newcastle Building Society ("NBS") today announced it has exchanged contracts for the sale of its Pre Paid Cards business (PPC) to Wirecard Card Solutions Limited ("the Buyer"), a subsidiary of Wirecard AG.
The Society received expressions of interest in PPC from several organisations and after a period of negotiation a sale was agreed between NBS and the Buyer.
The purchaser is part of the Wirecard AG Group, one of the leading international full-service providers of products and services for electronic payments as well as innovative solutions in the fields of prepaid and co-branded cards for both business and private customers. Wirecard AG, based near Munich (Germany), is a TecDAX listed Company, tracking the 30 biggest technology stocks below the DAX at Frankfurt Stock Exchange.
The employment of all 24 of the Society's PPC staff will be transferred over to the Buyer under the Transfer of Undertakings (Protection of Employment) Regulations (TUPE).
The agreed cash purchase price amounts to GBP 7.5 million (approx. EUR 8.9 million). Further earn-out payments of up to GBP 1.5 million (approx. EUR 1.8 million) for 2012 and of up to GBP 1.0 million (approx. EUR 1.2 million) for 2013 may be made, subject to achievement of financial targets
Jim Willens, Chief Executive at NBS said: "This is a significant and positive development for our Society. While our PPC business has performed consistently we needed to thoroughly assess the feasibility of it forming part of our strategy as a traditional building society going forward.
"As part of the sale, it was important to us to secure the jobs of all 24 employees so we were delighted all staff will transfer to the Buyer and that the jobs will stay in the North East.
"The Society has performed well so far this year, as illustrated in our half year results, and our underlying performance is continually improving. This positive development is set to build on the progress we have already made."
The Society expects completion to take place week commencing 19th December 2011.
ENDS
For more information, please contact:
Natalie Falkous
Group Communications Corporate Manager
0191 244 2024
natalie.falkous@newcastle.co.uk