Optimal Payments to Acquire Skrill5 years ago
Optimal Payments has announced that it plans to acquireSkrill Group from CVC Funds and other shareholders for $1.2 billion. The deal should see the two biggest UK companies offering digital transfer of funds create a mutual business endeavor producing around $697m in revenue.
Optimal Payments, the company behind Neteller, will combine its digital payment business with Skrill’s services. Together, they will be able to provide a hundred payment types in 22 different languages and 41 currencies offered by England Group. Optimal has explained that it will fund the deal through cash, new debt facilities, and a right issue worth 451m pounds.
Dennis Jones, Optimal Payments chairman, said that the company is taking advantage of a lifetime opportunity to acquire the business. In his opinion, Skrill combined with Optimal will become the UK-based leader in the online payment business. The company revealed that their management team is extremely excited about the future due to the merger.
It is clear that one of the biggest advantages for Optimal will be a client base that will be more diversified and it will be easier for the company to connect with customers at online gambling sites. Optimal has been growing during the last few years and the result was 2014 revenue that was was up to $365, a 44% increase from the previous year. President and CEO of Optimal Payments, Joe Leonoff, claims that the company has established a solid foundation for the future.
Skrill, which has partnerships with several online gambling operators, is one of the largest online pre-paid card providers in Europe. It will certainly make Optimal Payments stronger and more successful because they have also established a solid foundation for the future, especially in the US online gambling market.
Skrill became regulated in New Jersey and it was the first digital wallet service that was offered by casino sites in the state. It is also one of the world’s leading digital payment companies with more than 36 million account holders that trust Skrill with their funds.
Optimal Payments is also trusted by numerous business and consumers in over 200 countries across the globe and the acquisition will see them expand even further. The deal between UK’s biggest digital wallet companies is expected to be closed by the third quarter of 2015.
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