Nuvei acquires Mazooma, a US provider of payment technologies for gaming and sports betting Toronto Stock Exchange: NVEI
(All amounts in US dollars)
MONTREAL, April 16, 2021 (GLOBE NEWSWIRE) – Nuvei Corporation (“Nuvei” or the “Company”) (TSX: NVEI and NVEI.U), the global payment technology partner of successful brands, today announced that it has entered into a definitive agreement to acquire Mazooma Technical Services Inc. (“Mazooma”), a US provider of sports betting and gaming payment technologies for approximately $ 56 million, plus additional consideration subject to l ” achievement of specific performance criteria (over a maximum period of 3 years from the closing date) for a total maximum consideration of approximately $ 315 million. Approximately 24% of the consideration is expected to be paid through the issuance of Subordinate Voting Shares, with the remainder to be paid in cash. The transaction is subject to the prior approval of the Toronto Stock Exchange as well as customary closing conditions and is expected to close in the second quarter of 2021.
Mazooma is a leading provider of account-to-account payments in online gaming and sports betting in the United States and is a registered provider in 9 states, licensed in 12 states, and holds licenses and exemptions. transmitting money in a total of 47 states. Mazooma’s Instant Bank Transfer payment solution includes a Same Day Automated Clearing House (ACH) for payments and payments; and through a partnership with Plaid, is connected to 11,000 financial institutions in the U.S. Mazooma is integrated with the majority of U.S. online gaming and sports betting platforms and operators, and is expected to process over $ 2 billion dollars in total ACH * volume in 2021.
“Mazooma will enhance and expand Nuvei’s portfolio of alternative payment methods with a leading ACH platform with payment and payout functionality, developed and used exclusively for online gaming in the United States,” said Philip Fayer, president and CEO of Nuvei. “Due to low credit card acceptance rates, ACH is today a must-have payment capability and solution for online gaming and sports betting operators. Additionally, this acquisition will not only provide Nuvei with the necessary product functionality, but also vendor registration, compliance, and operational infrastructure to meet merchant requirements in any regulated state in the United States. This acquisition will truly strengthen our engagement and presence in the US online gaming and sports betting industry. “
* Total volume does not represent revenue generated by Mazooma, but rather the total dollar value of transactions processed by merchants under a contractual agreement with Mazooma. The total volume is explained in more detail in the company’s most recent MD&A on Financial Condition and Results of Operations.
We are Nuvei (TSX: NVEI and NVEI.U), the global payment technology partner of successful brands. We provide the intelligence and technology businesses need to succeed locally and globally, through a single integration – propelling them further, faster. Combining payment technology and consulting, we help businesses remove payment barriers, optimize operating costs and increase acceptance rates. Our proprietary platform offers direct connections to all major payment card systems in over 200 markets around the world, supports 455 local and alternative payment methods, nearly 150 currencies, and 40 cryptocurrencies. Our goal is to make our world a local market. For more information, visit www.nuvei.com.
Mazooma is a payment technology company whose mission is to simplify payments. As a leading solution for sports betting and igaming games, our patented technology can be found on the cash desk of sports betting and igaming operators in the United States Providing a top-notch experience, seamless integration and secure banking connections, Mazooma creates enthusiastic fans of traders and consumers. Headquartered in Toronto, Canada, the company is trusted by leading brands in the industry and supports the majority of sportsbook and igaming merchants in the United States. To learn more, visit www.mazooma.com.
This press release contains “forward-looking information” within the meaning of applicable securities laws. Forward-looking information involves known and unknown risks and uncertainties, many of which are beyond the control of the Company, which could cause actual results to differ materially from those disclosed or implied in such forward-looking information. These risks and uncertainties include, but are not limited to, Nuvei’s ability to meet all closing conditions, to complete the transaction on schedule, as well as Nuvei’s ability to integrate Mazooma, to accelerate its development schedule. and increase its sales. Forward-looking information is based on the beliefs and assumptions of management and on information currently available to management. Although the forward-looking information contained in this press release is based on what management believes to be reasonable assumptions, we caution you against placing undue reliance on such information as actual results may differ from forward-looking information. Unless otherwise indicated or the context indicates to the contrary, forward-looking information contained in this press release is provided as of the date of this press release, and the Company does not undertake to update or modify such forward-looking information whatsoever. due to new information, future events or otherwise, except as required by applicable law.
Vice-President, Head of Investor Relations