More consolidation in the exciting world of digital payments as cloud commerce solutions provider Digital River has agreed to acquire LML Payment Systems, a NASDAQ-listed provider of electronic payment processing and other services.
Digital River will cough up approximately $102.8 million (or $3.45 per share) in cash for the company.
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Digital River argues that the purchase will expand its online payment service offerings to businesses of all sizes, and not just the enterprise and mid-sized merchants it has traditionally focused on:
“LML Payment Systems processes online payments for more than 14,000 small to mid-sized merchants. The combination will enable Digital River to broaden its online payment services to businesses of all sizes.
Collectively, the companies will handle more than $20 billion in online transactions for tens of thousands of companies across a broad range of industries, including software, consumer electronics, government, utilities, event registration and mobile payments.”
LML provides credit card processing, online debit, electronic funds transfer, automated clearinghouse payment processing and authentication services, and more.
The company also has a number of patents.
Digital River will bank on LML to boost its ‘World Payments’ solution, but also extend the freshly acquired company’s white-label channel and mobile payments solutions. LML will in turn be able to access Digital River’s solutions to offer its clients a wider selection of international payment options.
The acquisition has been approved by the boards of directors of both companies and is expected to close during the fourth quarter in 2012 or the first quarter in 2013.