Japanese conglomerate SoftBank is to invest EUR 900 million (over $1 billion) in German payment company Wirecard, it announced in a press release. Wirecard will receive the funds from an affiliate of SoftBank.
According to a signed memorandum of understanding, the two companies will partner to develop novel payment solutions. Moreover, SoftBank Group will support Wirecard’s expansion to the Japanese and South Korean markets.
The investment will be made in convertible bonds. After a five-year period, SoftBank will be able to convert the shares to 6.9 million Wirecard shares—approximately 5.6 per cent of the company. Shareholders will vote on the bond issuance during Wirecard’s Annual Shareholders meeting in June.