Blue Label has sold its 17% stake in payment company Ukash for an undisclosed amount to the Skrill Group as part of a del in which Skrill bought all of Ukash.
In the year to May, Ukash provided Blue Label with R14.1 million in profits, up from R7.3 million a year previously. Overall, Blue Label reported R448 million in net profit for year.
Skrill operates in more than 200 countries with 100 payment options and 39 currencies. Through its entities it processes more than 149 million online transactions annually, with a combined value of nearly EUR13 billion.
The company expects Ukash to add scale and reach to its paysafecard, which it says is one of Europe's most popular, proven and secure prepaid payment solutions for purchasing online. The payment system was launched in 2000 and is available via a network of more than 450 000 distribution outlets across 39 countries. It became part of Skrill Group in 2013.
"In combination, paysafecard and Ukash will enable Skrill Group to expand digital payments across both established and emerging markets."
David Sear, who will become CEO of Skrill Group in January, says: "The acquisition of Ukash will significantly extend our reach in the high-growth prepayment market. We are proud to support both consumers and online businesses with the world's largest online cash replacement payment method and look forward to serving a combined base of millions of consumers around the world".
Udo M"uller, CEO of paysafecard, notes the deal brings together two prepaid technologies with strong synergies. "Ukash increases paysafecard's global presence and will open up new opportunities for online businesses."
The completion of the transaction is subject to regulatory approvals.
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