Fema is an Australian company that helps consumers pay for services and purchases on mobile phones and credit cards.
It started in 2004, and has grown to become one of the leading prepaid card and mobile banking providers in Australia.
The company has a market share of about 25 per cent, according to Credit Suisse.
Fema has a strong network of stores in Australia, which is why it has been able to take advantage of the prepaid card boom in recent years.
It recently launched Fema Card, which offers customers the option to purchase a prepaid card for $2.50 per month for up to three months, or $7.50 for a full year.
Femar said the deal was a key piece of the company’s strategy, and the transaction represents a significant investment for Fema.
Femab, the subsidiary of Fema that operates the Fema Cards business, has a 25 per part share in Fema as well as a 25.5 per cent share in Cignia, the parent company of Femafon.
Femafón is a joint venture between Fema and Cignus, which operates Cigno, Femas mobile wallet and Femas PayPass.
Femal is also the owner of the Femab app, which allows customers to buy prepaid cards on mobile phone networks.
Femas cardholders will receive an email notification when Femas receives a new payment, Fema said in a statement.
“The Fema mobile wallet, Femab payment service and Femab mobile payment card are operated by Femas Group Pty Ltd and we expect Femas to continue to operate Femas payments, and to continue operating Femas, Femafons payment service, Femar payment service under the Femafont brand.”
Fema declined to comment on the acquisition.
The Femafona transaction will provide Fema with a combined market capitalisation of $2bn.
Cignos parent company, Femal, has said it plans to sell Fema to Femab in 2019.
The sale will give Fema a combined total value of $4.5bn.
Femi is currently valued at $3.6bn, according the Sydney Morning Herald.