TIDMPAYS
RNS Number : 6543I
Paysafe Group PLC
01 September 2016
1 September, 2016
Paysafe acquires affiliate technology provider Income Access
Income Access' technology platform and 25,000+ affiliate network
further enhance Paysafe's product capabilities
Paysafe (LSE: PAYS.L, "Paysafe" or the "Group"), a leading
global provider of payment solutions, announces today that it is
expanding its product capabilities by acquiring Income Access Group
("Income Access"), a pioneering affiliate technology business for a
cash consideration of CAD$40m (approximately US$30m(1) ).
Income Access is a market-leading brand providing innovative
affiliate technology for businesses to manage their performance
marketing programmes. In addition, more than 25,000 affiliates use
the company's multi-channel software for their marketing
campaigns.
Income Access was founded in 2002 and is based in Montreal with
employees in Vancouver, London and Brisbane.
Paysafe President and Chief Executive Officer Joel Leonoff said:
"By adding Income Access's affiliate technology to our product
suite alongside our Skrill and NETELLER brands and deepening our
merchant relationships, this transaction delivers on Paysafe's
strategic objectives to provide relevant payment solutions that
serve the evolving needs of our merchants.
"Income Access is an excellent fit for our business. This
acquisition will help to extend our leadership position in
niche-orientated payment solutions as we add value for our
merchants and redefine the role of a payments provider," Leonoff
said.
Lorenzo Pellegrino, divisional CEO at Paysafe and responsible
for the Group's flagship Skrill and NETELLER brands, said: "We are
always looking to enhance the breadth of our product offering. By
integrating Income Access's industry-leading expertise within our
business, we both expand our global affiliate network and embed our
payment capabilities more deeply into the merchants we work
with."
Commenting on today's announcement, Income Access Founder and
CEO Nicky Senyard said: "Our technology and global affiliate
network, combined with Paysafe's comprehensive payments offering,
creates a winning combination for the benefit of our existing and
new partners." Senyard will remain with the business as Managing
Director.
Transaction structure
Subsidiaries of Paysafe have acquired the Income Access business
from EcomAccess, IA Digital Marketing and their shareholders as
well as certain software and related intellectual property from
Share Results, a company owned by the shareholders of Income
Access, for an aggregate consideration of CAD$40m. CAD$28m of the
purchase price is payable in cash on completion. The deferred
consideration balance of CAD$12m will be payable to the vendors in
three equal instalments of CAD$4m over the 18-month period
following completion.
The book value of gross assets acquired is approximately CAD$2m.
The excess of the purchase price is expected to be allocated to
software, customer assets and goodwill. The fair value assessment
of the acquired assets has not yet been finalised as of the date of
this release. In the last fiscal year to 31 March 2016 of Income
Access, the business generated approximately CAD$3.3m of profit
before income taxes.
Paysafe was advised by Canaccord Genuity and Stikeman Elliott
LLP. Income Access was advised by PWC and Norton Rose Fulbright
LLP.
(1) Illustrative exchange rate from Bloomberg as at 4.30pm BST
31 August 2016 = 1.313
About Paysafe
Paysafe provides digital payments and transaction-related
solutions to businesses and consumers around the world. Paysafe
makes transactions easy by enabling fast, convenient and secure
ways to pay-before, pay-now and pay-later through its digital
wallets, prepaid solution, payment processing and card issuing
& acquiring products and services. We believe that every point
of every payment should be relevant, simple and secure. With nearly
two decades of experience, Paysafe is trusted by merchants and
consumers in more than 200 countries and territories, to move and
manage money via more than 100 payment types and 40 currencies.
Paysafe offers multi-platform products with an emphasis on emerging
payment technologies including mobile. Paysafe's brand portfolio
includes NETELLER(R) and Skrill(R), MeritCard, paysafecard(R),
payolution(R) and FANS Entertainment. Paysafe Group plc shares
trade on the London Stock Exchange under the symbol (PAYS.L). For
more information, visit: www.paysafe.com.
About Income Access
Income Access is a technology and digital marketing business
servicing the global gambling and gaming market, including
traditional iGaming, social gaming, mobile, land-based and trading
(Forex, Binary Options) brands. Through its award-winning software
and a partnership-centric approach, Income Access delivers
comprehensive data and strategic insight on marketing campaigns
across all digital and offline channels. Income Access partners
include: Betfred, Gala Interactive, Coral, Sportingbet, Sky Betting
& Gaming, PMU, Jackpotjoy, Stan James, Bet Victor, Twin Spires,
PKR and Pinnacle.
This announcement contains inside information.
For further information, contact:
Paysafe Group plc
Michelle Singleton, VP Investor Relations
+44 (0) 20 3826 9800 / investorrelations@paysafe.com
Anna Howard, Head of Corporate Communications
+44 (0) 203 8269822 /pr@paysafe.com
Tavistock (Financial PR)
Simon Hudson / Mike Bartlett / Andrew Dunn
+44 (0) 20 7920 3150 / paysafe@tavistock.co.uk
This information is provided by RNS
The company news service from the London Stock Exchange
END
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