WorldRemit is to acquire Africa-focused remittance app Sendwave in a cash and stock transaction that will value the combined company at $1.5 billion.
Under the terms of the deal, Sendwave will continue to operate independently and retain its mobile applications, brand, management and employees and key partners. WorldRemit will act as a bridge to expand the app - "which makes sending money cross-borders as easy as sending a text" - into new markets in Latin America and Asia.
Will Fogel, CEO, Sendwave, says: “We’re eager to combine WorldRemit’s wide reach with our recipe for success in areas like Kenya, Ghana, and Nigeria. Together, we can achieve a better service for current and future users.”
In the last 12 months, ending 30 June 2020, WorldRemit and Sendwave have sent approximately $7.5 billion in transfers, generating approximately $280 million in revenue. On a pro forma basis, the combined company will have over 100 send licences including for every US state, across a network that includes 50+/150+ send/receive countries and almost 8,000 payments corridors.
WorldRemit declined to disclose the price paid for Sendwave, although Bloomberg sources suggested the deal commanded a $500 million price tag.