Net Element, Inc. (NETE) Signs Definitive Document
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Posted On: 05/28/2015 6:23:24 PM
Net Element, Inc. (NETE) Signs Definitive Documentation to Acquire Online Payments Innovator PayOnline
Today before the opening bell, Net Element announced that it has signed definitive documentation to acquire PayOnline, a leader in online transaction processing services and payment technology, for up to $8.4 million in total consideration.
The closing payment is $3.6 million cash, which has been paid into escrow, and $3.6 million in stock. There can also be additional consideration from earn-out incentives of up to $1.282 million in cash and stock based on performance.
PayOnline processes online payments for over 10 million active consumers and thousands of merchants in the Russian Federation, Europe and Asia. Net Element’s plan is to integrate the PayOnline leading payments platform into its existing global payments-as-a-service network to expand its transaction processing offerings. Notably, the company will also be able to sell its mobile payment services to PayOnline’s merchants.
The 2014 McKinsey Global Payments Map, released October 2014, states Russia is the world’s 6th largest payments market, accounting for $50 billion in payments with a rapidly growing online population. Card issuance is growing at 30% per year.
Once the acquisition is finalized, Net Element global merchants will have access to a broad array of value-added services, including card2card transfer, payment split and the highest level of data security (Validated Level 1 PCI DSS Compliance). Also, because of their direct agreements with European and Russian Federation banks, PayOnline’s thousands of merchants will be able to transact in the U.S. while Net Element’s U.S. merchants will have an ability to transact in Asia, Europe and Russia.
“PayOnline and Net Element’s assets are highly complementary and we can now leverage them to grow revenues by attracting more merchants and consumers to our omni-channel payments platform,” stated Oleg Firer, CEO. “Well deserved congratulations to all involved in bringing this transaction to a successful signing.”
Net Element expects this acquisition to be profitable this year.
For more information on Net Element, visit www.netelement.com
Please read full disclaimers at http://disclaimer.missionir.com
Today before the opening bell, Net Element announced that it has signed definitive documentation to acquire PayOnline, a leader in online transaction processing services and payment technology, for up to $8.4 million in total consideration.
The closing payment is $3.6 million cash, which has been paid into escrow, and $3.6 million in stock. There can also be additional consideration from earn-out incentives of up to $1.282 million in cash and stock based on performance.
PayOnline processes online payments for over 10 million active consumers and thousands of merchants in the Russian Federation, Europe and Asia. Net Element’s plan is to integrate the PayOnline leading payments platform into its existing global payments-as-a-service network to expand its transaction processing offerings. Notably, the company will also be able to sell its mobile payment services to PayOnline’s merchants.
The 2014 McKinsey Global Payments Map, released October 2014, states Russia is the world’s 6th largest payments market, accounting for $50 billion in payments with a rapidly growing online population. Card issuance is growing at 30% per year.
Once the acquisition is finalized, Net Element global merchants will have access to a broad array of value-added services, including card2card transfer, payment split and the highest level of data security (Validated Level 1 PCI DSS Compliance). Also, because of their direct agreements with European and Russian Federation banks, PayOnline’s thousands of merchants will be able to transact in the U.S. while Net Element’s U.S. merchants will have an ability to transact in Asia, Europe and Russia.
“PayOnline and Net Element’s assets are highly complementary and we can now leverage them to grow revenues by attracting more merchants and consumers to our omni-channel payments platform,” stated Oleg Firer, CEO. “Well deserved congratulations to all involved in bringing this transaction to a successful signing.”
Net Element expects this acquisition to be profitable this year.
For more information on Net Element, visit www.netelement.com
Please read full disclaimers at http://disclaimer.missionir.com
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