Isle of Man-based online money transfer and payments business Neovia Financial has announced an agreement to acquire IDT Corporation’s European prepaid payment services division for $15.05 million.
Until recently Neovia was known as Neteller and it has agreed to purchase the entire issued share capital of IDT Financial Services Holdings Limited along with certain other assets providing prepaid MasterCard products for the UK market the Prime Card brand. In combination with Neovia’s Net+ card services, the deal will create one of Europe’s largest independent prepaid debit card businesses with the funds for the purchase, including ten million dollars of banking regulatory capital, coming out of existing resources.
Neovia revealed that the acquisition was key and would add new product lines and distribution channels based on the Prime Card brand. It stated that the purchase would also accelerate the development of its prepaid Net+ card business while rapidly increasing the active customer base for its Neteller e-wallet service.
IDT Financial Services operates under a banking license issued by authorities in Gibraltar and the acquisition will also allow Neovia to develop long-term additional financial services for its consumer and merchant customers.
“The acquisition of IDT Finance represents a major milestone in the development of our financial services offering to both our consumers and merchants and in our overall strategy to diversify our business,” said Ron Martin, President and Chief Executive Officer for Neovia.
“The integration of IDT Finance’s well-regarded prepaid debit card operation and banking licence will enable us to leverage our existing capabilities to offer additional products and services.
“We welcome IDT Finance to Neovia and look forward to developing the full potential of the business as part of our broader strategic vision.”