Net1 it has entered into an agreement to acquire a 30% interest in Bank Frick, a fully licensed bank based in Balzers, Liechtenstein.
The completion of the investment is subject to approval from the Liechtenstein Financial Market Authority. Following the successful completion of this investment, Net1 will have a two-year option to acquire a further 35% in Bank Frick.
Bank Frick provides banking services, with one of its key strategic pillars being the provision of payment services and funding of financial technology opportunities. It holds acquiring licences from both Visa and MasterCard and operates a branch in London.
"We entered into a long term co-operation agreement with Bank Frick last year to become our strategic banking partner for the provision of the support and banking services required to deploy Net1's products and services, including VCPay, Finetrading and money remittances in Europe," says Serge Belamant, chairman and CEO of Net1.
"We have received invaluable support from Bank Frick and we have jointly identified many exciting joint opportunities that would require funding, whether for our working capital finance, card issuing and acquiring or transaction processing activities. We decided to become a strategic investor in Bank Frick to cement a critical component of Net1's international activities as we are completely reliant on having a stable, long term and strategic relationship with a fully licensed bank - being a significant stakeholder is the best way to ensure alignment and longevity. We have agreed with Bank Frick that approximately $30 million of its free equity will be utilised as seed capital for a fund dedicated to our future activities."
"Net1 possesses enormous digital know-how. With the expansion of Net1's involvement, we will be able to strengthen our current business areas, drive forward our fintech strategy, develop new digital business models and enter new markets," says Mario Frick, chairman of the board of directors of Bank Frick.
"Thanks to the scale effects this will bring, we can face the increasingly complex regulatory environment more effectively."
Bank Frick is a family-run Liechtenstein bank with headquarters in Balzers. It was founded in 1998 by Kuno Frick Sr. It is fully owned by the Kuno Frick Family Foundation.