Prepaid card program manager nFinanSe Inc. announced November 6 it has entered an agreement to sell itself to AccountNow Inc., another prepaid card program manager.
From a press release announcing the news:
The acquisition is subject to the satisfactory completion of due diligence, the preparation and approval of definitive documents, First California Bank approval and certain other customary closing conditions. The transaction is expected to close in phases, with the initial phase on November 30, 2012, after which nFinanSe Inc. will become a wholly-owned subsidiary of AccountNow, Inc.
While it may be tempting to look at this as the beginning of a wave of consolidation, it appears that the deal may be one of opportunity for both companies. In a filing with the Securities and Exchange Commission a year ago, the company said that it would likely need to raise additional capital during 2012. It seems that nFinanSe found that an outright sale was more beneficial than rasing additional capital.
For AccountNow, the deal will provide a retail distribution channel for its cards, which have been sold primarily online.
Click here to read the press release.