Net1 sells KSNET for $237 Million.
Net1, a South African payment processor has finally sold KSNET, South Korean payment processor to Stonebridge Capital and Payletter for about $237 million.
This follows the intrinsic value of KSNET which was not appropriately reflected in Net1’s overall valuation last year.
Therefore, the Board of Net1 decided to sell KSNET so the company would focus on its core strategy, boost liquidity, and maximize shareholder returns.
“We are pleased to have completed this transaction, achieving a key milestone of our strategic plan. We thank the KSNET team for its integral contributions to the group over the past decade,” said Herman Kotzé,
The CEO further stated that Stonebridge and Payletter can better handle KSNET.
He said “We believe Stonebridge Capital and Payletter are the right strategic partners for KSNET, as they are committed to building further scale in the South Korean payments market,”
“This transaction marks a significant milestone in our strategic plan, and allows management to further focus on its core strategy of providing fintech solutions for the under-banked in South Africa, Africa, Europe, and other emerging economies as well as our new blockchain-related products,” he concluded.
KSNET operates as a value-added network service provider for credit card and banking transaction processing in South Korea. KSNet’s revenue comes from the provision of payment processing services to merchants and card issuers through its Value Added Network.
Net1 is a provider of transaction processing services, financial inclusion products and services, and secure payment technology. Net1 operates a market-leading payment processor in South Africa. Net1 offers debit, credit and prepaid processing and issuing services for all major payment networks.
Net1 provides innovative low-cost financial inclusion products, including banking, lending, and insurance. It has a primary listing on NASDAQ and a secondary listing on the Johannesburg Stock Exchange.