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.