Wirecard’s North American Unit Hires Bank for Potential Sale

(Bloomberg) -- Wirecard AG’s North American unit is seeking to be acquired, saying its business is continuing without interruptions from the scandal enveloping its German parent.

An investment bank is coordinating the sale process, Wirecard North America Inc. said in a statement.

“Wirecard North America continues to operate without any disruption to clients and cardholders,” said Seth Brennan, managing director of the unit, in the statement. “The strong, independent cash flow and financial position of Wirecard North America allow us to operate the business on a completely standalone basis.”

The German parent filed for insolvency late last week after investigations revealed that 1.9 billion euros ($2.1 billion) previously reported as cash were missing from its accounts and probably never existed. Since the revelations, Wirecard’s Chief Executive Officer Markus Braun resigned and was arrested.

Wirecard North America, formerly the Citi Prepaid Card Services business, was bought by Wirecard in 2016. The unit said its cardholders and client funds remain safe and protected at well-capitalized, independent U.S. and Canadian partner banks.

©2020 Bloomberg L.P.