After reviewing the corporate structure of International Express Payment, US-based Espirit Financial Services has confirmed that it will not move forward with the acquisition of the group, but instead will purchase its sister company, Check 21 China.

The review revealed that the business pursuits of Check 21 China are more in line with Espirit’s current business focus and short-term strategic needs.

Check 21 China offers Espirit an opportunity to deliver revenue in a significantly shorter time frame, with a scalable business model that is directly variable as the companies continue to expand the customer base of participating banks.

The terms of the acquisition have been finalized, with the transaction expected to close within a week. Check 21 China will be acquired in a combination of cash and stock transaction.

The stock will be placed in an escrow account, and delivered in stages as the business achieves a number of business milestones. This will see the issued share capital rise from 6.1 billion to nearly eight billion shares.

Garr Winters, CEO of Esprit, commented: We are delighted to move forward with Check 21 China. We had excellent rapport with Robert and his colleagues, and certainly saw the tremendous opportunities that had been developed by the team. This provides Esprit with an entree into the Chinese market in a manner that delivers cash flow and tangible business results practically right out of the gate.