Global payment technology firm Nuvei Corporation has entered into a definitive agreement to acquire Mazooma Technical Services Inc, a US focused gaming and sports wagering payment technology provider in a deal worth circa $56m.
The transaction includes an additional consideration, subject to the achievement of specific performance criteria, of up to a total maximum value of approximately $315m.
Approximately 24% of the consideration is expected to be paid via the issuance of subordinate voting shares with the remainder to be paid in cash. The transaction is subject to the prior approval of the Toronto Stock Exchange as well as customary closing conditions and is expected to close in the second quarter of 2021.
Philip Fayer, Nuvei’s chair and CEO, explained: “Mazooma will enhance and expand Nuvei’s portfolio of alternative payment methods with a leading Automated Clearing House (ACH) platform with both pay-in and pay-out functionality, developed and used exclusively for online gaming in the US.
“Because of low credit card acceptance rates, ACH is a must-have capability and solution in payments for online gaming and sports betting operators today. Additionally, this acquisition will not only give Nuvei the necessary product functionality, but also the vendor registration, compliance, and operational infrastructure to address merchant’s requirements in any regulated US state.
“This acquisition will truly solidify our commitment to and presence in the US online gaming and sports betting industry.”
Mazooma is a leading account-to-account payments provider in US online gaming and sports betting and is currently a registered vendor in nine states, with permission in 12 states, and holds money transmitter licenses and exemptions in a total of 47 states.
The company’s Instant Bank Transfer payment solution features same-day ACH for pay-ins and payouts; and through a partnership with Plaid, is connected to 11,000 financial institutions in the US.
Integrated with the majority of US gaming platforms and online gaming and sports betting operators, the firm is expected to process more than $2bn of ACH total volume in 2021.