The acquisition enables Paysafe to strengthen its position as an open banking and eCash solutions provider in Latin America
Paysafe to acquire SafetyPay for $441m. (Credit: Gerd Altmann from Pixabay.)
UK-based specialised payments platform Paysafe has agreed to acquire online payment company SafetyPay for a consideration of $441m in cash.
Established in 2007, SafetyPay supports eCommerce transactions at more than 180,000 cash collection points, through its open banking and eCash solutions.
The eCommerce payment platform operates primarily in Latin America and in Europe.
Upon closing, the SafetyPay team will become a part of Paysafe’s eCash and online banking solutions team, led by Paysafe eCash CEO Udo Mueller.
Also, SafetyPay CEO Gustavo Ruiz Moya will become CEO, eCash for Latin America and global head of open banking, reporting to Mueller.
The acquisition is expected to close in the fourth quarter of 2021.
Paysafe CEO Philip McHugh said: “We are very excited to welcome SafetyPay into the Paysafe family. The team has successfully built a market-leading payment platform that has become the de facto open banking solution for Latin America.
“We look forward to partnering with Gustavo and the team to continue to build eCash and online banking solutions across LATAM and beyond.
“Furthermore, by combining the capabilities and open banking network of both SafetyPay and PagoEfectivo with our existing solutions, we can become the true market leader in the region and provide merchants with unique and powerful combinations to grow their business.”
With the acquisition, Paysafe will strengthen its position as an open banking and eCash solutions provider in the Latin American eCommerce market.
Also, the transaction will help the company to expand its footprint in the region, following its agreements to acquire the Peruvian payments platform PagoEfectivo.
Paysafe is well-positioned to capture a portion of the emerging open banking market by further integrating its services and solutions into the region’s payments ecosystem.
With expanded eCash business, the company is anticipated to provide eCash and open banking solutions in more than 60 countries with over one million distribution points.
Furthermore, Paysafe has secured financing commitments from the banks and intends to refinance the bridge facilities simultaneously with new debt.
Paysafe board of directors chairman Bill Foley said: “We are really pleased to see SafetyPay and PagoEfectivo become part of Paysafe and expand our payment solutions across card payment processing, digital wallets, eCash and online banking payments with a strong foothold in high growth Latin American markets.
“We see exciting synergies in key industry verticals like iGaming where we want to win. From the start, we have had a plan to grow in areas where we can achieve scale through operational efficiency.”
RBC Capital Markets served as exclusive financial advisor and Greenberg Traurig as legal advisor to Paysafe, while PJT Partners served as exclusive financial advisor and Quarles & Brady as legal advisor to SafetyPay, on the transaction.