Paysafe finalizes deal with Merchants’ Choice Payment Solutions
Todd Linden, the CEO of MCPS, will join Paysafe as CEO of Payment Processing North America while Giovanni Diano, MCPS CFO, has been appointed as CFO of Payment Processing.
Payment solutions provider Paysafe Group Plc (LON:PAYS) today announces the completion of the acquisition of substantially all the assets of Delta Card Services Inc., the holding company for Texas-based payment processor Merchants’ Choice Payment Solutions.
In a short filing with the London Stock Exchange, confirming the completion of the deal, Paysafe said that Todd Linden, MCPS CEO, will join Paysafe as CEO of Payment Processing North America while Giovanni Diano, MCPS CFO, has been named as CFO of Payment Processing.
The acquisition was initially announced in July, with Paysafe putting the value of the deal at $470 million. The consideration, payable in cash, was said to be funded by a $380 million Incremental Loan Facility plus $90 million from existing cash funds.
MCPS reported revenue of $446 million and earnings before tax of $18.4 million in the year ended 31 December 2016. At that date, MCPS had gross assets with a value of $90.4 million.
Meritus, a Paysafe Processing subsidiary, is an existing partner of MCPS. A portion of MCPS’ revenue will therefore be treated as inter-company in the combined business.
MCPS is a data-focused full service payment processor for merchants and sophisticated, high-volume Independent Sales Organisations in North America. Delivering card processing services to approximately 60,000 merchants in 50 states and processing over $14 billion in sales volume annually, MCPS is a major provider to small and medium-sized businesses.
The acquisition of MCPS boosts Paysafe’s processing scale and product-set for ISOs and merchants in North America. The addition of point-of-sale activities to Paysafe’s Processing division significantly strengthens its ability to provide processing for POS, online and order ahead payments all under a single real-time consolidated analytics platform.