WorldRemit to acquire app-based remittance company Sendwave

WorldRemit acquisition of Sendwave : UK-based cross-border payments company WorldRemit has agreed to acquire Sendwave, an app-based remittance company, in a cash and stock deal.

The terms of the deal were not disclosed by the parties.

Sendwave has developed a digital remittance service for making money transfers across East and West Africa as easy as sending a text. Operated by Chime, the company is also authorized to transmit money in the US, the UK, Canada, and the European Union.

Commenting on WorldRemit acquisition of Sendwave, Will Fogel – CEO of Sendwave, said: “Our users send money so their loved ones can pay for necessities like utilities, healthcare and education/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.

“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.”

WorldRemit and Sendwave, in the last 12 months, ending 30 June 2020, are said to have sent nearly $7.5 billion in transfers, and had generated about $280 million in revenue.

The combined firm will have more than 100 send licences including all the US states, across a network that includes over 50/150 send/receive countries and nearly 8,000 payments corridors.

Breon Corcoran – WorldRemit CEO, commenting on WorldRemit acquisition of Sendwave, said: “Both WorldRemit and Sendwave 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. 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.”

Following the closing of the deal, the app-based remittance company will continue to operate independently besides retaining its mobile applications, brand, management, and employees, and major partners.

WorldRemit acquisition of Sendwave is likely to be closed in Q4 2020 should it receive licensing and regulatory approvals.