As an update to the previous announcement that it made in July, Paysafe Group (LSE:PAYS), a payment solutions provider, has announced the completion of its acquisition of Delta Card Services, the holding company for Merchants’ Choice Payment Solutions (MCPS), a payment processor based in Houston, Texas.
The acquisition was executed for $470 million and it marks a push from UK-based Paysafe into the American market, which is currently dominated by Paypal. Bolstering its presence in a new market in an industry which is both lucrative and competitive should be very beneficial to the firm.
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It is likely to be a mutually beneficial relationship as MCPS is known to be strong in terms of technology and data analytics in the payment services industry.
As a follow up to the acquisition of MCPS by Paysafe, the CEO of MCPS, Todd Linden, will join Paysafe as CEO of Payment Processing for North America, while Giovanni Diano, MCPS CFO, will become the CFO of Payment Processing.
This acquisition comes amidst the growing interest in the payments industry. Many larger companies are looking for smaller ones to acquire as a means of penetrating and consolidating markets. The interest in this industry is exemplified by the bid from the Blackstone Group consortium to acquire Paysafe, and also by the strong revenue numbers posted by Paysafe this year.