NEW YORK | Optimal Payments buys Meritus Payment Solutions and Global Merchant Advisors to drive its multi-channel sales growth in the rapidly expanding US ecommerce market. The Meritus acquisition will be paid for by $150 million in cash and $60 million of Optimal Payments shares. Optimal Payments will continue to operate the Meritus brand.
Acquisition of Global Merchant Advisors
Optimal Payments has also entered into a definitive agreement to acquire Global Merchant Advisors, Inc. (“GMA”), a US based online payments company, for up to $15 million in cash. Completion of the Meritus Acquisition and the GMA Acquisition (together, the “Acquisitions”) are conditional on one another and subject to customary closing conditions. Closing of the Acquisitions is expected to occur early in the third quarter of 2014.
Strategic highlights of the Acquisitions
The strategic benefits of both acquisitions:
- adds over 8,000 US high growth small and medium businesses (“SMB”) in a broad range of vertical markets to Optimal Payments portfolio
- US acquiring bank relationships: provides additional established US acquiring bank relationships with leading bank partners.
- Adds scale to NETBANX®: diversifies and broadens Optimal Payments’ NETBANX payment gateway and acquiring services business.
- Strong financial rationale: Meritus generated over 74 million in revenues in 2013 (almost +50%) and GMA 8 million.
The perfect candidate
Joel Leonoff, President and Chief Executive Officer, Optimal Payments, commented:“The US market represents the single greatest expansion opportunity for Optimal Payments. After careful evaluation of a number of potential candidates, Meritus stood out as the perfect choice on all fronts. The company’s strong stakeholder relationships, multi-channel sales force, established presence with small and medium businesses in the US and entrepreneurial spirit makes them an ideal acquisition for us. I am very excited about the combination of our businesses which immediately accelerates the Group’s growth opportunities and accomplishes a stated key strategic goal for us in 2014.”
Sourced from Optimal Payments, July 2nd, 2014