Next Group Closes Acquisition of 51% Interest in SDI Next to Access Distribution for Cuentas/MIO Products.
11 December 2017 - US-based financial technology company Next Group Holdings, Inc. (OTCQB: NXGH) has closed the acquisition of 51% of SDI NEXT Distributions LLC (SDI) allowing for direct distribution of its banking and prepaid general purpose reloadable cards through New York, US-based Fisk Holdings, LLC, the company said.
Terms of the transaction were not disclosed.
Next Group has signed a letter of intent with Fisk Holdings' to access Fisk's established distribution business for third-party physical gift cards, mobile top up, financial services and content, which presently includes more than 30,000 US retail locations, including store locations, convenience stores, bodegas, store fronts, etc.
Upon completion, the acquisition will provide immediate third party physical gift card distribution on a consignment basis to the stores, for the company's recently announced Cuentas and MIO virtual mobile banking solutions aimed at unbanked and underbanked consumers, making them available to consumers at the retail locations Fisk Holdings presently serves.
This will immediately enable these distributors to add all the top selling US physical third party gift card brands, on a consignment basis with first usage activations.
Next Group said this acquisition opens the door for the launch of its MIO prepaid and Cuentas virtual banking card programs that interface with a consumer's Cuentas account.
Cuentas bank serves an estimated 103m unbanked/underbanked/financially underserved individuals in this country. Remittances to Mexico from people living abroad reached a record 7bn in 2016, according to the Wall Street Journal (2/1/17).
Next Group Holdings, Inc., through its operating subsidiaries, uses proprietary technology and licensed technology to provide mobile banking, mobility and telecommunications solutions to underserved, unbanked and emerging markets.
Sector: Banking/Financial Services
Target: SDI NEXT Distributions/51% stake
Buyer: Next Group Holdings
Deal size in USD:
Type: Corporate Acquisition
Buyer advisor: , ,
Comment: Deal will provide Next Group with immediate third party physical gift card distribution on a consignment basis to the stores, for the company's recently announced Cuentas and MIO virtual mobile banking solutions aimed at unbanked and underbanked consumers.
|Printer friendly Cite/link Email Feedback|
|Publication:||M & A Navigator|
|Date:||Dec 11, 2017|
|Previous Article:||SuperValu Grocery Wholesaler/Retailer Closes USD 180m Acquisition of Associated Grocers of Florida Co-Op.|
|Next Article:||New Mountain Capital to Acquire Majority Stakes in Payer Service Providers CenseoHealth, Advance Health.|