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German payments company Wirecard has bought Great Indian  Retail Group‘s for 230 million euros ($254 million) in a cash deal. The development was first reported by Reuters. Accordingly, Wirecard will acquire 100% of the shares from Great Indian Retail Group and financial investors of companies operating payment services in India, Philippines, Indonesia and Malaysia.

In addition, Wirecard also bought 60% of the shares in GI Technology (GIT), a subsidiary which has a prepaid payments instrument licence from the Reserve Bank of India. Wirecard will take over more than 900 employees in offices out of Delhi, Chennai, Hyderabad, Bangalore, Mumbai,Kolkata, Lucknow, Manila, Batam and Kuala Lumpur. Further payments of up to a total of 110 million Euros are linked to the overall financial performance of the acquired businesses in calendar years 2015 to 2017

Wirecard expects that Great Indian Retail Group’s businesses are expected to achieve EBITDA of more than 7 million euros this year and up to 18 million euros next year after integration costs. Great Indian Retail Group’s saw sales of 45 million euros this year, and expects this to increase to more than 75 million in 2016.

What Great Indian Retail Group does

GI Retail operates the brands “iCASHCARD”, “Smartshop”, “StarGlobal”, “Commerce Payment” in the four countries it is present.

iCASHCARD, is a semi-closed-loop electronic wallet issued by GI Technology and claims to serve 20,000 people daily. iCASHCARD is also accepted in over 10,000 ecommerce sites in India including IRCTC, BookMyShow, AirAsia and eBay.

The company also has a distribution and recharge network called Hermes and operates as banking correspondent for Yes Bank in India. GI Retail says that it has a network of 100,000 retail agents who handle top-up services, cash payment, banking correspondence, bill payment and domestic as well as international remittance services.

Also read: The problem with white-label banking correspondents for payments banks

Competition

– Oxigen’s wallet service has 10 million users and is also backed by an offline retail network of over 200,000 touch points which can carry out recharges on the wallet.

– FINO Paytech, which got a payments bank licence from the RBI earlier this year, claims to have network of over 35000 transaction points covering 60,000 urban and rural areas across 29 states with 30 million customers.