FlexiGroup Ltd. has entered into an agreement to acquire from ACT Merchant Services the Australia, New Zealand and Asia operations of Paymate Pty. Ltd., FlexiGroup announced Dec. 6.
Though financial details of the deal were not disclosed, FlexiGroup said in a filing with the Australian Stock Exchange that the company would fund the acquisition using cash reserves and equity options.
Launched in 2000, Paymate is an online payments business that works with 3,500 retailers. It is one of only three payment options integrated into eBay Inc.’s checkout system in Australia.
John DeLano, FlexiGroup managing director and CEO, said in the filing the company initiated the acquisition to gain an early-mover advantage in the online payment market, where sales volumes are growing at exponential rates.
The acquisition would expand FlexiGroup's strategic footprint significantly and provide a new online distribution channel, a broader range of merchant categories and access to overseas markets, according to the filing.
“Using the Paymate technology platform, we will deliver a deferred Internet payment product to be called FlexiPay. This product is similar to Bill Me Later, a highly successful product offered in the U.S.,” DeLano said. EBay owns Bill Me Later.
The company believes Paymate's online technology platform would support significant growth in payment volume, according to the filing.
FlexiGroup is a leading provider of vendor and retail point-of-sale finance and telecommunication services in Australia, New Zealand and Ireland. It has a distribution network of approximately 11,000 retailers.
What do you think about this? Send us your feedback.
