Acquisition Will Expand Cuentas' Retail and Mobile Reach and Drive Growth in Key Target Markets
MIAMI, FL / ACCESSWIRE / January 10, 2022 / Cuentas, Inc. (NASDAQ:CUEN)(NASDAQ:CUENW) ("Cuentas"), a leading fintech provider of mobile banking and payment solutions, has signed a binding letter of intent to acquire the operations and distribution network of prepaid wireless and digital provider SDI Black 011 (SDI), as well as Mango Mobile and Black Wireless. The deal is expected to close by or before May of this year.
Cuentas previously invested in the expansion of the SDI network, and will leverage these assets to accelerate reach of the Cuentas prepaid debit card and digital wallet via retail, mobile and other channels. SDI generated more than $9 million in retail revenue in 2021.
"This acquisition will drive more recurring revenue and create new operational efficiencies for Cuentas." said Jeff Johnson, CEO of Cuentas. "We expect SDI's profitable assets to contribute to economies of scale across our business, and enable more solutions within the Cuentas mobile app, driving higher profits and accelerating market growth in our core fintech business."
The SDI B2B portal serves over 30,000 US bodegas, wireless retailers and convenience stores, and will enable retailers to sell from a portfolio of hundreds of virtual products without carrying inventory, generating incremental profits in real-time.
Black011 and its brands already have hundreds of thousands of subscribers who purchase services via the SDI website and digital portal, both of which connect via API to the largest wireless companies in the world. This technology allows SDI to be one of the largest distribution channels for wireless services in the New York City metro tri-state area and nationwide.
Through this acquisition, both retailers and Black011 subscribers will benefit from access to Cuentas solutions including the Cuentas Prepaid Debit card, OMNY Transit, Amazon cash, prepaid gift cards, rebates, new offers and more.
Cuentas, Inc. (NASDAQ:CUEN & CUENW) is a fintech e-banking and e-commerce service provider with proprietary technology that delivers digital financial services to the underbanked and un-banked Hispanic, Latino and immigrant population including mobile and online banking, prepaid debit, ACH and mobile deposits, cash remittance, peer to peer money transferring, and other services. The Cuentas General Purpose Reloadable (GPR) Card includes a digital wallet, discounts for purchases at major
physical and online retailers, rewards, and the ability to purchase digital content. For more information, visit https://cuentas.com.
This news release contains "forward-looking statements," as that term is defined in section 27a of the United States Securities Act of 1933, as amended, and section 21e of the United States Securities Exchange Act of 1934, as amended. Statements in this press release, which are not purely historical, are forward-looking statements and include any statements regarding beliefs, plans, expectations, or intentions regarding the future. Except for the historical information presented herein, matters discussed in this news release contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Statements that are not historical facts, including statements that are preceded by, followed by, or that include such words as "believe," "plan," or "expect" or similar statements are forward-looking statements.
SOURCE: Cuentas, Inc.