The now infamous payments processor Wirecard has confirmed the intention to sell its UK arm to Railsbank.
Wirecard is a German payments company and its shares have fallen by more than 80% after the auditors from Ernst & Young had raised questions over cash balances worth €1.9bn.
The company’s CEO Markus Braun resigned with immediate effect and got arrested, while COO Jan Marsalek is one of the current world’s most wanted men.
Railsbank was founded in 2016 by Nigel Verdon and Clive Mitchell, who have over 50 years of financial experience combined. Railsbank is running over 50 payment schemes in the UK. This means the sale of Wirecard UK would bring it up to over 120 customers.
Sifted has confirmed, the transaction would include employees, clients and real estate. This Railsbank purchase will be finalised in November for an undisclosed sum.
In an emailed statement, a Wirecard spokesperson says that the deal is by no means a sure thing. “We are aware of recent press coverage around a potential transaction with Railsbank Technology,” they write.
“We are continuing our discussions with Railsbank, but no final transaction documents have yet been agreed.”
“The WCS saga could have been avoided if the right regulatory regime had been put in place,” Verdon told Sifted in the aftermath. “The Wirecard scandal brought to light that fundamental changes should be made in the industry to ensure healthy market growth and stability.”