NEOVIA announces the acquisition of Optimal Payments, a leading online payments business
Thursday 20 January 2011 - NEOVIA Financial Plc (AIM: NEO) today announces the creation of a true scale player in alternative payments through the combination of leading businesses in stored value and straight through processing (“STP”).
NEOVIA has entered into of a definitive agreement to acquire the online payments business and substantially all of the assets of 7012985 Canada Inc. (“OP Group”), a leading global payment processor based in Montreal, (together “Optimal Payments”), for consideration of up to US$ 50 million (£31.25 million) in cash, shares, vendor debt financing and warrants (the “Acquisition”).
Optimal Payments is a leading provider of straight through processing solutions to merchants in North America and Europe, processing more than US$ 2.5 billion in transactions annually.
Strong strategic fit with NEOVIA’s stored value (“NETELLER”) business and adds significant scale to NEOVIA’s existing processing capabilities (”NETBANX”).
Dramatically diversifies and broadens NEOVIA’s merchant base; provides a strong North American presence and fuller exposure to rapidly growing e-commerce markets.
Strong financial rationale: profitable and cash generative business, providing operational synergies and increased scale.
Joel Leonoff, founder, President & CEO of Optimal Payments, to join NEOVIA’s board as an executive director on completion. Senior leadership team of Optimal Payments to remain and Danny Chazonoff to lead the combined STP business.
Proposed change of Company’s name to Optimal Payments Plc and ticker to OPAY.L.
Mark Mayhew, NEOVIA’s President & CEO, commented:
“This acquisition provides a highly complementary fit for our stored value business and is absolutely aligned with the “twin pillars” strategy we outlined last year. We are excited about the possibilities for growing the combined business and we see substantial synergies in the near term. As we have come to know the Optimal team members through the acquisition process, we have been impressed by their achievements, their vision and their ambition, and we look forward to working together to realise the strategy of building a best-in-class global alternative payments business.”
Joel Leonoff, President & Chief Executive Officer of Optimal Payments, added:
“NEOVIA is an excellent strategic partner for the Optimal business and will enable us to achieve the scale which is essential in the payments market today. We believe this business combination uniquely positions us in the payment space through our consolidated technology and unparalleled comprehensive product offering. The combined customer base, technology platforms and innovative solutions of NEOVIA and Optimal make this a compelling transaction for our customers, our employees and our end users globally. We are excited by the opportunities this combination provides and share Mark and his team’s enthusiasm for what we can now achieve together.”
For more information, read the full press release.
About Optimal Payments
Optimal Payments is a leading global payment processor that provides credit/debit card and e-check (Direct Debit) solutions to retail/point of sale, Internet, and mail-order/telephone-order (MOTO) merchants in Canada, the United States, Europe, and the Caribbean, processing in excess of US$ 2.5 billion in transactions annually. In operation for over 10 years, Optimal Payments was one of the first technology companies to provide services in the electronic payment business. Its head office is in Montreal, with additional offices in the United States; Gatineau, Quebec; and the United Kingdom. Optimal Payments develops and maintains proprietary software, which enables its merchant clients to interface with various banks, credit and debit card providers, and other entities involved in the payment processing chain. Its software has advanced and highly effective fraud- and risk-management components built into it, allowing the company to assist clients in mitigating the risk of fraudulent transactions. Its software and payment solutions are tailored to the needs of individual clients so that the services match their needs in a wide range of businesses with varying requirements. Visit www.optimalpayments.com for more information.
About NEOVIA Financial Plc
Trusted by consumers and businesses in over 170 countries to move and manage billions of dollars each year, NEOVIA Financial Plc is a leading alternative payments business. Through the NEOVIA Payment Network, merchants use the NETBANX® processing service to simplify how they accept and settle card, direct-from-bank, and cash payments, and the NETELLER® payment account to increase margins, capture new customers and increase customer lifetime values. Being independent has allowed the company to support tens-of-thousands of retailers and merchants in many geographies and across multiple industries.
NEOVIA Financial Plc is quoted on the London Stock Exchange’s AIM, with a ticker symbol of NEO. Subsidiary company NETELLER (UK) Ltd is authorised by the Financial Services Authority (FSA) to operate as a regulated e-money issuer.
On 20 January 2011, NEOVIA Financial Plc announced the acquisition of Optimal Payments and its intent to rename to Optimal Payments Plc.
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