The transaction is based in cash and stock and is expected to close in the fourth quarter, the release stated. The price was not disclosed.
Sendwave specializes in its own digital remittance service, which has seen growth as of late in its home market of Africa, and the company wants to expand its services to Asia and Latin America, according to the release.
The year ending June 30 saw both companies sending a total of $7.5 billion in transfers, which generated around $280 million in revenue. It was more than 50 percent year-over-year growth.
Sendwave, despite the acquisition, will operate on its own and retain control of its own mobile applications, brand, management, employees and key parties, the release stated.
WorldRemit CEO Breon Corcoran said in the release that both companies "share a common purpose: allowing customers to easily and cost effectively send financial support to families, friends and businesses in other countries."
"WorldRemit has one of the broadest and most accessible networks for money transfers globally," he said in the release. "Combining it with Sendwave, which offers instant, no/[low]-fee and fully digital payments from North America and Europe to Ghana, Nigeria, Senegal and East Africa, addresses customer needs for fast and secure digital payments — especially given today’s travel restrictions and economic turmoil.”
Sendwave CEO Will Fogel noted in the release that the company's users "send money so their loved ones can pay for necessities like utilities, healthcare and education/school fees," and said it is as easy to use the service as it is to send a text.
Remittances are seeing a global boost in digital payments even while the physical ones decreased as the pandemic set in. Remitly, focused on remittances, raised $85 million for its business, while other companies like MoneyGram and Western Union are readying themselves for what could be a major, permanent shift in how money moves across borders. Digital payments have been favored as of late, as people avoid going out to public spaces due to the coronavirus.