Optimal Payments PLC, a leading online payment and risk management provider, has entered into a definitive agreement to acquire California-based TK Global Partners, parent of Meritus Payment Solutions. According to the company, the acquisition will accelerate Optimal’s expansion in U.S. markets, including iGaming payment systems.
Under the agreement, Optimal would acquire Meritus for $210 million, consisting of $150 million in cash and $60 million of Optimal Payments shares (issued in equal tranches over four years commencing on the first anniversary of the closing date), subject to customary closing adjustments.
Optimal Payments has also entered into a definitive agreement to acquire the trade and assets of Global Merchant Advisors, Inc.. a U.S.-based online payments company, for up to $15 million in cash, $10 million of which is payable on closing and the balance based on future performance of the business.
Completion of both acquisitions are conditional on one another and subject to customary closing conditions. Closing on both is expected to occur early in the third quarter of this year.
“The U.S. market represents the single greatest expansion opportunity for Optimal Payments,” said Joel Leonoff, president and CEO of Optimal Payments. “After careful evaluation of a number of potential candidates, Meritus stood out as the perfect choice on all fronts. The company’s strong stakeholder relationships, multi-channel sales force, established presence with small and medium businesses in the U.S. and entrepreneurial spirit makes them an ideal acquisition for us.”
Alan Kleinman, principal and co-founder of Meritus Payment Solutions, added, “Combining forces with Optimal Payments marks a significant step in realizing our strategic goals. Optimal Payments offers our employees, merchants and business partners the experience, global infrastructure and product offering to achieve the scale required in today’s payments market. Our two organizations share the same enthusiasm and philosophy for future growth as we prepare to combine operations and leverage each other’s strengths.”
