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EML Payments renegotiates final PFS deal following COVID-19 outbreak

Australia's EML Payments Ltd has completed the acquisition of Prepaid Financial Services (Ireland) Ltd  in a deal valued at $163 million (GBP 131.5 million) after renegotiating the price downward following the COVID-19 outbreak, according to a regulatory filing. 

The deal will include a performance-based earnout of up to $68 million (GBP 55 million) in cash that is contingent on PFS meeting certain agreed-upon EBITDA targets from June 2021 to June 2023. 

The companies originally signed the deal, valued at $291 million (GBP 226), plus the earnout component in November, 2019.

"Our original deal was on track to close, until recent weeks, when COVID-19 started to have an impact on global stock markets," Noel Moran, CEO of EML Payments said in a press release. "With share prices plummeting around the world, the value of FinTechs was similarly affected."

Moran said that in light of the economic global reality the final agreement is a "great result for everyone involved."

The combined company will operate in 26 countries and support more than 3,500 prepaid programs.