Irish payment technology firm 3V has been acquired by SafeCharge for €14.5 million.
SafeCharge, which provides payment services, risk management and IT solutions for online businesses, said it has entered definitive agreements to acquire 3V for a consideration of €14.5 million, of which €11.6 million is payable on completion with the balance payable over three years.
The deal is expected to be completed by the end of January.
"We are pleased that SafeCharge has selected our technology and talented team in order to deliver solutions to its extensive network of merchants and channels. We are committed to the success of this acquisition and look forward to collaborating with the SafeCharge team," said 3V chief executive Kieron Guilfoyle.
Established in 2004, 3V specialises in tools for the issuing, processing and management of pre-paid card programmes. The company has developed proprietary systems that support both physical card programmes and mobile based virtual cards, gift cards and virtual vouchers.
In addition to its issuing products, the company has developed proprietary acquiring systems and technologies to enable merchants to accept cash online. These acquiring technologies use well-established settlement systems via a network of 70,000 retail stores and partners.
The company has managed pre-paid programmes for customers such as Visa Europe, O2/Telefonica and Orange. These programmes include a virtual ticketing solution built for the 2012 Olympics for Visa Europe, O2 Money in Ireland, Orange Cash in Spain and gift cards which can be found in leading UK supermarkets.
In addition to its issuing products, the company has developed proprietary acquiring systems and technologies to enable merchants to accept cash.
The company is based in Blackrock. Co Dublin and employs approximately 56 staff.
For the financial year to the end of December 2013, 3V generated revenues of €2.9 million and a net loss of €3.2 million with net assets of €2.6 million.
SafeCharge said 3V will become the foundation of its card issuing activities through its new issuing division. The division is expected to be operationally profitable at an ebitda level in its first year of operation.
“The acquisition marks a further milestone in the execution of SafeCharge’s strategic plan to enter new product verticals and deliver innovative payment technologies. 3V enables us to gain fast-track entry into the rapidly expanding prepaid card issuance vertical and will provide the foundation of what will become a significant new division within SafeCharge,” said David Avgi, SafeCharge chief executive.
