Montreal-based Paysafe, a leading global provider of payment solutions, announced last week that it is expanding its product capabilities by acquiring Income Access Group, a pioneering affiliate technology business for a cash consideration of C million (approximately US million).
“Our technology and global affiliate network, combined with Paysafe’s comprehensive payments offering, creates a winning combination for the benefit of our existing and new partners.”
Income Access is a market-leading brand providing innovative affiliate technology for businesses to manage their performance marketing programs. In addition, more than 25,000 affiliates use the company’s multi-channel software for their marketing campaigns.
Income Access was founded in 2002 by Nicky Senyard and is based in Montreal with employees in Vancouver, London and Brisbane.
Paysafe President and Chief Executive Officer Joel Leonoff said: “By adding Income Access’s affiliate technology to our product suite alongside our Skrill and Neteller brands and deepening our merchant relationships, this transaction delivers on Paysafe’s strategic objectives to provide relevant payment solutions that serve the evolving needs of our merchants.
“Income Access is an excellent fit for our business. This acquisition will help to extend our leadership position in niche-orientated payment solutions as we add value for our merchants and redefine the role of a payments provider,” Leonoff said.
Lorenzo Pellegrino, divisional CEO at Paysafe and responsible for the group’s flagship Skrill and Neteller brands, said: “We are always looking to enhance the breadth of our product offering. By integrating Income Access’s industry-leading expertise within our business, we both expand our global affiliate network and embed our payment capabilities more deeply into the merchants we work with.”
Income Access CEO Senyard said: “Our technology and global affiliate network, combined with Paysafe’s comprehensive payments offering, creates a winning combination for the benefit of our existing and new partners.”
Senyard will remain with the business as managing director.
Subsidiaries of Paysafe have acquired the Income Access business from EcomAccess, IA Digital Marketing and their shareholders as well as certain software and related intellectual property from Share Results, a company owned by the shareholders of Income Access, for an aggregate consideration of C$40 million. C$28 million of the purchase price is payable in cash on completion. The deferred consideration balance of C$12 million will be payable to the vendors in three equal installments of C$4 million over the 18-month period following completion.
The book value of gross assets acquired is approximately C$2 million. The excess of the purchase price is expected to be allocated to software, customer assets and goodwill. The fair value assessment of the acquired assets has not yet been finalized as of the date of this release. In the last fiscal year to March 31, 2016 of Income Access, the business generated approximately C$3.3 million of profit before income taxes.
Paysafe was advised by Canaccord Genuity and Stikeman Elliott LLP. Income Access was advised by PWC and Norton Rose Fulbright LLP.
