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EML buys UK's Prepaid Financial for $423m

EML Payments is buying Prepaid Financial Services in a deal that valued the London-based firm at about $423 million.

The ASX-listed payment solutions provider said the deal would also include an additional earn-out component of up to $103 million.

The earn-out is conditional on Prepaid Financial achieving certain earnings targets.

The deal will be funded through an equity raising composed of an entitlement offer to raise about $183 million, and an institutional share placement to raise $67 million, EML said in a statement on Monday.

Prepaid Financial Services, which operates in 24 countries, provides e-wallets and digital banking software among other services.

EML added that the acquisition would generate synergies of about $6 million a year.