M&A Update: D+H Buys Fundtech; Net Element Acquires PayOnline (March 31, 2015)
Following last week’s Optimal Payments purchase of Skrill for $1.2 billion, another $1 billion-plus will change hands in two more acquisitions that will have global implications for the payments companies involved.
DH Corp. (D+H), a Toronto-based financial technology provider, announced yesterday it’s acquiring Fundtech, a Jersey City, N.J.-based provider of global transaction banking solutions. The $1.25 billion deal is expected to close in the second fiscal quarter of this year. The acquisition solidifies D+H as a top global fintech provider, deepens its U.S. customer base, broadens its offerings and provides growth opportunities in North America, according to an announcement. The deal also expands D+H’s presence and growth opportunities, it said. Fundtech provides financial technology to banks and corporations in the Americas, EMEA and APAC regions.
Net Element Inc., a Miami-based global provider of mobile payments and value-added transactional services, announced earlier this month it’s acquiring PayOnline, a Russian online transaction processing services and payment technology provider. The deal is worth $8 million, according to reports, but no timetable was given for an expected close.
Net Element says it will benefit from PayOnline’s direct agreements with seven acquiring banks in Europe and five banks in the Commonwealth of Independent States, which include Russia, Belarus and Ukraine among nine others, that enable electronic transactions for foreign merchants. The deal also enables Net Element to cross-sell and monetize PayOnline’s merchant and reseller relationships, deploy technologies and services in emerging markets, and integrate PayOnline’s proprietary technologies in the U.S., according to an announcement.
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