Payment technology partner Nuvei Corporation has entered into a definitive agreement to acquire US-focused gaming and sports betting payment technology provider Mazooma Technical Services.
The deal is worth an initial $56m, but could be worth up to $315m if specific performance criteria are met over the three years after the acquisition closes.
Approximately 24% of the consideration is expected to be paid via the issuance of subordinate voting shares, with the remainder to be settled in cash.
The deal remains subject to the prior approval of the Toronto Stock Exchange, as well as customary closing conditions, but is expected to close during the second quarter of this year.
Mazooma is a registered vendor in nine states across the US, with permission in 12 states, and holds money transmitter licenses and exemptions in a total of 47 states.
Through a partnership with Plaid, the provider is connected to 11,000 financial institutions in the US and is integrated with the majority of US gaming platforms and online gaming and sports betting operators.
“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,”, Nuvei’s chair and chief executive Philip Fayer said.
“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.”