The transaction is expected to close during the fourth quarter of 2021
Paysafe Ltd, the owner of Paysafecard prepaid payment method that allows customers to make online payments has announced last week that they will acquire SafetyPay for $441 million (nearly €375 million) in an all-cash transaction.
The acquisition is a great way to strengthen its presence in Latin America as SafetyPay payments platform has a presence in 11 Latin American countries, with additional coverage in Europe. For Paysafe, this deal will strengthen its strategic power in Latin America. The company has recently announced acquisition agreement with Peruvian payments platform, PagoEfectivo.
The merged entities will be able to offer e-cash and open banking solutions in over 60 countries with over one million distribution points. With this acquisition, the SafetyPay team will transition into Paysafe’s expanding eCash and online banking solutions’ team headed by Paysafe eCash CEO Udo Muellerm. SafetyPay’s CEO, Gustavo Ruiz Moya, will become CEO, eCash for Latin America and Global Head of Open Banking, reporting to Mueller.
“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.” said Philip McHugh, CEO of Paysafe.
Established in 2007, SafetyPay is a multinational ecommerce payments platform that enables online cash payments, bank transfers and cross border transactions for a global market of consumers.
SafetyPay operates via the largest network of banks and cash collection points in 11 countries in Latin America with over 180,000 collection points. The payments platform also has an additional network of over 380 bank partnerships, and another 20,000+ collection points in seven European countries.
The transaction is expected to close in the fourth quarter of 2021. Paysafe’s banks have provided financing commitments and Paysafe intends to refinance these bridge facilities with new debt contemporaneously with the completion of the acquisition. Paysafe shares were up 5% to $10.70 in premarket trading.