UK online money transfer company, WorldRemit has agreed to acquire Sendwave, an app-based, Africa-focused remittance firm for US$500 million. The COVID-19 pandemic created a genuine business case for the deal as digital banking services is on high demand.
Sendwave business strategy and operations focus on money transfers from Europe and North America to most African countries including major markets like Nigeria, Ghana, Senegal, Kenya, Tanzania, and Rwanda.
In the business year that ended on June 30, 2020, both companies sent a total of US$7.5 billion in transfers to customers and made a revenue of US$280 million, a 50% year on year growth compared to previous revenues.
The cash and stock value of the transaction are worth more than US$500 million and both companies hold a combined value of about US$1.5 billion.
The deal will be finalised in the fourth quarter of 2020 after satisfying the pesky governance and regulatory requirements.
According to the World Bank, it predicts there will be a 20% global decline in remittances because of the economic crisis exacerbated by the COVID-19 pandemic. Remittances for 2020 is pegged at US$445 billion and will be surged in 2021 to US$470 billion.
