Africa-focused remittance firm Sendwave is set to be acquired by online money transfer company WorldRemit.
According to a report on Bloomberg, the cash and stock deal is worth more than US$500 million while the combined company will be valued at more than US$1.5 billion. The deal is expected to close in Q4 2020 subject to licensing and regulatory approvals,
Founded in 2014 by Drew Durbin and Lincoln Quirk, Sendwave mission is to make sending money to Africa as easy and affordable as sending a text. Through its mobile app, Sendwave has built a leading and rapidly growing digital remittance service to East and West Africa.
“WorldRemit has one of the broadest and most accessible networks for money transfers globally. 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,” said WorldRemit CEO, Breon Corcoran.
“Our users send money so their loved ones can pay for necessities like utilities, healthcare and school fees. ‘Sendwave’-ing money is as easy as sending a text – one less worry for the hard-working and generous diaspora communities that we serve,” said Will Fogel, CEO Sendwave. “We’re eager to combine WorldRemit’s wide reach with our recipe for success in areas like Kenya, Ghana, and Nigeria. Together, we can achieve a better service for current and future users.”
Sendwave will continue to operate independently and retain its mobile applications, brand, management, employees and key partners.
In the last 12 months, ending 30 June 2020, WorldRemit and Sendwave have sent approximately US$7.5 billion in transfers, generating approximately US$280 million in revenue. This represents a YoY growth of over 50% for the year ended June 2020 relative to historic combined revenues.
On a pro forma basis, the combined company will have over 100 send licences 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 US$715 billion remittances market that the World Bank estimates is growing at a 10% annual CAGR.
Cover Image Credits: Sendwave