(Image via Euro Asia Pay Holdings Inc.)
A recent study by Grandview Research found that the global education technology market is valued at $ 89.49 billion (USD) in 2020 and is expected to experience a compound annual growth rate (CAGR) of 19.9% from 2021 to 2028.
Benefiting from a unique position to capitalize on this growth, Euro Asia Pay Holdings Inc. (CSE: PAE, Forum), which has just signed a binding letter of intent to acquire a new generation Australian fintech company, NexPay Pty Ltd.
EAP and NexPay provide innovative and convenient payment solutions for the global education market and the proposed acquisition is expected to enhance their respective offerings.
The letter of intent outlines the terms under which EAP will acquire all of the issued and outstanding equity securities of NexPay in exchange for 14.8 million EAP common shares for a total transaction value of $ 3.7 million ( CAD).
NexPay has obtained the right to appoint a director of the company. EAP also agreed to provide a loan of $ 80,000 (AUD) to NexPay to help cover legal and other expenses. The advance should take the form of a 12-month secured loan that bears interest at the rate of 5% per annum.
NexPay is a global payments company specializing in education related payments and providing payment services to education agents, schools and students. NexPay has processed tens of thousands of payments totaling nearly $ 200 million (CAD) since the inception of the company. All of this combined with a broad global reach – with headquarters in Sydney, Australia, NexPay also has subsidiaries in Brazil, Chile, Colombia, Mexico and the UK and further expansion plans in China and India on the horizon – makes this a perfect match for this growing market and indicates a significant step forward for EAP.
As mentioned in our introduction, the ‘edtech’ industry is poised for tremendous expansion, progression and growth during this rapid transformation that will align with the developing world of technology in which we find ourselves. This decision ensures that EAP is the right place to continue building their innovative financial solutions for the next generation of consumers.
In a press release on this news for investors, EAP ‘CEO Peter MacKay said the transaction will help diversify this company, as well as its target market and the industries it serves.
“Having already collaborated with NexPay on various projects, joining forces will allow both parties to accelerate and realize their full potential in the market through effective synergies. We are confident that this transaction will bring great added value to both companies’ subscriber base, stakeholders and the global education market as a whole. We are excited about the opportunity to work more closely with the NexPay team and welcome them into the EAP family. ”
NexPay CEO Piew Yap added that EAP’s technology stack and banking infrastructure will enable his team to accelerate their growth plans and improve their payment speed and efficiency.
“We have seen steady growth in volume over the past eight months with the lifting of travel restrictions. With Australian borders set to reopen by the end of the year, a swift and seamless integration with EAP will get us started just as colleges and universities around the world prepare for the new admission of international students, especially in the North America region. The NexPay team is delighted to join an innovative and high growth company like EAP. ”
No finder’s fees are payable by EAP or NexPay in connection with the proposed transaction. The parties plan to reach a definitive agreement no later than December 17, 2021, and the transaction is expected to close in the first quarter of 2022.
The transaction is subject to the parties entering into a definitive agreement and obtaining all necessary approvals, including CSE approval.
Euro Asia Pay & CloseCurlyQuote’s first product, SideKick, allows parents to transfer, control and monitor payments to their children in a simple and intuitive way.
The company recently announced that it is expanding the commercial reach of its core technology to also support Canadian parents and their children with a new product, called Hero Financials, which is slated for initial launch this quarter.
Hero is a full-service banking alternative, with highly personalized products addressing the unmet financial needs of young Canadians and their parents, such as parent-controlled deposit accounts, budget tools, and access to a physical Mastercard.
With the introduction of Hero to the Canadian market, EAP anticipates that the Company will be able to provide access to a very convenient and intuitive tool that facilitates financial literacy in children and adolescents, with the direct control and participation of their children. parents.
EAP stock is up 4% this month.
(Euro Asia Pay Holdings Inc. stock chart – September to October 2021.)
For more information, visit www.euroasiapay.com.
FULL DISCLOSURE: This is a paid article produced by Stockhouse Publishing.