Bango PLC (AIM:BGO, OTCQX:BGOPF) is acquiring the global payments business of Japanese mobile phone network operator NTT DOCOMO in a deal that will be earnings enhancing in the first full year of ownership.
The revenue contribution from the transaction will be US$5mln in 2022, rising to US$16mln in 2023.
As for underlying profit (EBITDA), this will fall by US$4mln in 2022, before making a positive contribution in 2023.
A year later, and with some significant cost synergies, the NTT assets should contribute around US$10mln to adjusted EBITDA, Bango said in a statement.
The UK group is paying a headline US$4mln for the business, which is sitting on net cash of around US$3.1mln. The acquisition will be funded from the UK payments specialist’s own internal resources.
At the same time, strategic partner and shareholder, NHN Corporation, is offering Bango a US$10mln, three-year term loan.
The deal brings an additional US$3.5bn per year of end-user spend to the company’s payments platform while extending relationships with tech giants such as Amazon and Google.
"Acquiring DOCOMO Digital strengthens our position as a world leader in data-driven commerce,” said Bango chief executive Paul Larbey.
“The decision by NTT DOCOMO to transfer its global payments business to Bango is a major endorsement of our technology in the fast-growing digital economy.
Through the Bango platform, telcos can leverage the universal appeal of the world's biggest online brands and digital merchants can immediately reach new customers.
“Both will benefit from data-driven insights, giving consumers greater access to goods and digital services," Larbey said.