The cash and stock transaction is anticipated to close, subject to licensing and regulatory approvals, in Q4 2020.
FREMONT, CA: WorldRemit, a London, UK-based digital, global cross-border payments company, is to buy Sendwave, an app-based remittance company.
The cash and stock transaction is anticipated to close, subject to licensing and regulatory approvals, in Q4 2020.
Established in 2014 by Drew Durbin and Lincoln Quirk and led by Will Fogel, CEO, Sendwave has built a digital remittance service to East and West Africa, and this summer added Bangladesh, its first receiving market in Asia. In the last 12 months, ending 30 June 2020, Sendwave and WorldRemit have sent nearly US $7.5 billion in transfers, generating approximately US $280 million in revenue. On a pro forma basis, the combined company will have more than 100 send licenses including for every US state, across a network that includes 50+/150+ send/receive countries and almost 8,000 payments corridors, a broad footprint that serves a large, but fragmented $715 billion remittances market that the World Bank estimates is growing at a 10 percent annual CAGR.
Following the close of the deal, Sendwave would its operations independently and retain its mobile applications, management, employees, brand, and key partners.
Established in 2010 and led by CEO Breon Corcoran, WorldRemit currently serves over 4 million customers. Its digital services enable customers to send 90 currencies to 150 countries, across almost 8 thousand corridors. Recipients benefit from one of the widest ranges of money-out options, including mobile money, bank deposit, and cash pickup.
WorldRemit CEO Breon Corcoran said in the release that both companies "share a common purpose: allowing customers to easily and cost effectively send financial support to families, friends and businesses in other countries."
"WorldRemit has one of the broadest and most accessible networks for money transfers globally," he said in the release. "Combining it with Sendwave, which offers instant, no/[low]-fee and fully digital payments from North America and Europe to Ghana, Nigeria, Senegal and East Africa, addresses customer needs for fast and secure digital payments — especially given today's travel restrictions and economic turmoil."
