- Euro Asia Pay Holdings (EAP) has signed a binding letter of intent to acquire NexPay Pty Ltd.
- The proposed acquisition is expected to enhance both EAP’s and NexPay’s respective product offerings
- EAP will acquire NexPay for an aggregate transaction value of $3,700,000
- The transaction is expected to be completed during the first quarter of 2022
- The transaction is subject to the parties successfully entering into a definitive agreement and receiving all necessary approvals
- Euro Asia Pay Holdings is a developer of financial solutions
- NexPay is an Australian fintech company offering payment services to education agents, schools and students
- Euro Asia Pay Holdings Inc. (EAP) opened trading at C$0.26 per share
Euro Asia Pay Holdings (EAP) has signed a binding letter of intent to acquire NexPay Pty Ltd., an Australian fintech company.
Both EAP and NexPay provide innovative and convenient payment solutions for the global education market and the proposed acquisition is expected to enhance their respective offerings.
The LOI outlines the terms and conditions pursuant to which EAP will acquire all the issued and outstanding equity securities of NexPay in exchange for 14,800,000 common shares of EAP for an aggregate transaction value of $3,700,000.
No finder’s fees are payable by either EAP or NexPay in connection with the proposed transaction.
The parties anticipate entering into a definitive agreement by no later than December 17,2021, and the transaction is expected to be completed during the first quarter of 2022.
The transaction is subject to the parties successfully entering into a definitive agreement and receiving all necessary approvals, including the approval of the CSE.
NexPay has been granted the right to appoint one director of the company. EAP has also agreed to provide an AU$80,000 loan to NexPay in order to assist with its legal and other expenses. The advance is expected to be in the form of a secured loan with a term of 12 months that bears interest at the rate of 5 per cent per annum.
NexPay is a global payments company specialising in education-related payments. NexPay has processed tens of thousands of payments totalling close to $200 million since the company’s inception.
Peter MacKay, CEO of EAP commented on the transaction.
“At Euro Asia Pay, we continue to diversify our business, our addressable market and the industries that we service. Having previously collaborated with NexPay on various projects, joining forces will allow both parties to accelerate and meet their full potential in the market through synergistic efficiencies. We are confident that this transaction will add great value to both companies’ subscriber base, stakeholders and the global education market as a whole. We are thrilled with the possibility of working more closely with the NexPay team and to welcome them to the EAP family.”
Piew Yap, CEO of NexPay added,
“The tech stack and banking infrastructure of EAP will enable us to fast track our growth plans and improve our payment speed and efficiency. We are experiencing a consistent growth in volume in the past eight months with the lifting of travel restrictions. With Australian borders set to reopen by year end, a quick and seamless integration with EAP will enable us to hit the ground running just as colleges and universities around the world prepare for the new intake of international students especially in the North America region. The team at NexPay is excited to join an innovative and high growth company like EAP.”
Euro Asia Pay Holdings is a developer of financial solutions for the next generation of consumers. Its first product, SideKick, enables parents to transfer, control and monitor payments to their children in a simple, intuitive manner. The product includes a student-facing mobile application, a prepaid student payment card and a parent portal, among other features.
NexPay is an Australian fintech company offering payment services to education agents, schools and students-both, locally and globally.
Euro Asia Pay Holdings Inc. (EAP) opened trading at C$0.26 per share.
