Softbank bets $1 billion on battered payments firm Wirecard

SoftBank Group Corp.’s $1 billion bet on Wirecard AG is a boon for the battered German digital-finance firm and secures a major European partner for the Japanese tech conglomerate that’s bulking up in mobile payments.

For SoftBank, the agreement furthers its transformation from a telecommunications operator into a technology investor under founder Masayoshi Son. For Wirecard, the investment means easier access to markets in Asia and a vote of confidence after months of whipsawing shares following allegations of accounting misdeeds at its Singapore unit.

The deal involves a strategic partnership and a potential 5.6 percent stake at a price that’s 27 percent below Wirecard’s peak. The transaction, backed by convertible bonds, could make SoftBank Wirecard’s second-largest shareholder after Chief Executive Officer Markus Braun.