One of the major payment providers to the foreign exchange industry, publicly listed SafeCharge International Group (LON:SCH), announced in a regulatory filing today its acquisition of the international provider of payments services, risk management and IT solutions for online businesses, CreditGuard Ltd.
The company will finance its acquisition from its cash coffers for a total of $8 million plus an additional deferred consideration summing up to $0.4 million, subject to customary closing adjustments. The deal is expected to conclude in January 2015.
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According to the company’s announcement, “The acquisition of CreditGuard marks a further milestone in the execution of SafeCharge’s strategic plan aimed at entering new and rapidly growing markets and sectors bringing with it a portfolio of clients from sectors including travel, insurance, telecoms and government.”
CreditGuard was established in 1998, and is a certified payment services provider. The firm possesses white-labelling technologies and reconciliation solutions allowing it to deliver electronic payment processes to enterprises and SMEs, including major financial institutions and airline companies, among others.
The firm’s audited accounts for the financial year ended December 31, 2013, show revenues of $2.9 million (NIS 11.5 million) and profit before tax of $0.2 million (NIS 0.8 million).