Optimal Payments to buy Sentinel Topco in $1.2 billion deal
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Optimal Payments said the deal would expand its online payment and digital wallet services and reduce dependence on a few large customers, including its biggest in the gaming market.
Skrill Group, one of the largest pre-paid online voucher providers in Europe with its paysafecard brand, reported a core profit of $89 million in the year ended September.
Skrill Group reported a core profit of $89 million in the year ended September.
Optimal will pay 720 million euros in cash and issue 37.5 million new shares to the owners of Skrill, valued at 135 million euros, giving Sentinel Group Holdings a 7.9 percent stake in the enlarged firm, the company said.
Including net debt at Skrill of 256 million euros, Optimal said the total price being paid for Skrill is 1.1 billion euros.
Optimal said it would fund the deal through cash, new debt facilities and a fully underwritten rights issue for about 451 million pounds ($672 million).
The deal, which is expected to close by the third quarter of 2015, will add to earnings per share in the first fiscal year of ownership. ■