Payments provider Optimal Payments has completed the acquisition of Skrill, a deal which more than doubles the size of the company’s business.
Optimal said that together with Skrill, the enlarged group will have significantly enhanced scale across the world, with a strong presence in the fast growing and profitable stored value and payment processing sectors.
“Today is a very important milestone for Optimal Payments,” said Optimal president and CEO Joel Leonoff. “I am delighted we have successfully completed the acquisition of Skrill. This is a transformational deal which more than doubles the size of our business.
“Together, we are a stronger, more diversified business which is better able to compete on a global basis.”
Leonoff said that over the course of the last four months, the company has been further refining its integration plans for the two businesses.
“These plans are now more advanced and we are ready to commence executing the integration at a fast pace,” he continued. “Our confidence in extracting the resulting cost and revenue synergies remains very high. I believe our business will continue to go from strength to strength.”
The group will now be able to accept and process over 100 payment types in over 22 languages and in over 40 currencies, and will be well positioned to capitalise on the expected growth in the North American regulated online gambling market.
The acquisition is expected to be accretive to adjusted earnings per share from the first full financial year following completion. On-going cost saving synergies of approximately $40m per annum are targeted to be achieved by the end of the 2016 financial year.
Additionally, Optimal believes there will be further value upside potential from revenue cross-selling opportunities and platform consolidation.
“The board is confident that the transaction will deliver the earnings accretive benefits for shareholders from next year and that the intended move into the FTSE 250 will deliver enhanced liquidity,” said Optimal’s chairman Dennis Jones. “I would like to take this opportunity to congratulate the Optimal Payments leadership team and their staff for their commitment and dedication to turning the acquisition of Skrill from an aspiration into a reality.”
As the acquisition is classified as a reverse takeover under the AIM Rule 14. Following completion, the ordinary share capital of the company, as enlarged by the Skrill consideration shares, will be 474,731,482 ordinary shares of £0.0001 pence each.
source : www.gamingintelligence.com