EML buys European gift card business

John Kavanagh Payments, mobile & wallets

EML Payments is expanding its presence in the European market, with the acquisition of Flex-e-Card Ltd – a gift cards business.

The parties signed an agreement worth A$45 million on Friday. An EML subsidiary, EML Payments Europe, will acquire 100 per cent of FEC, which trades as flex-e-card and flex-e-vouchers.

FEC is described as “a provider of gift card solutions to the shopping mall sector”, with 226 shopping centres under contract in Europe – mainly the United Kingdom, Ireland, Poland, Italy and Finland.

In a statement to the ASX, EML said the acquisition would enhance its gift and incentive segment and it would deepen the company’s relationships with shopping centre operators, such as Unibail-Rodamco-Westfield.

It will also take the company into new markets, including Poland and the United Arab Emirates.

It said FEC was profitable and the acquisition would be earnings per share accretive immediately.