Net Element, a technology provider in mobile payments, has executed a definitive documentation to purchase PayOnline, an online payment provider in Russia, for a total consideration of up to $8.4m.
Following the acquisition, Net Element will combine PayOnline’s integrated platform of payment solutions into its global payments-as-a-service network in a move to stregthen its transaction processing offerings. The company will sell its mobile payment services to PayOnline’s merchants who process transactions for 10 plus million active Russia, Asia and Europe consumers.
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The deal will offer global merchants of Net Element access to a range of services including card2card transfer, payment split and the highest level of data security.
Subject to customary closing conditions, the acquisition includes a closing payment of $3.6m cash paid into escrow and $3.6m in stock as well as a further consideration of up to $1.282m in cash and stock based on performance.
The agreement will enable Net Element’s US merchants to transact in Asia, Europe and Russia due to PayOnline’s direct agreements with European and Russian Federation banks.
Additionally, Social Discovery Ventures (SD Ventures), a majority shareholder of PayOnline, will become a Net Element shareholder as part of the deal and Net Element will also team up on business with SD Ventures other portfolio companies including Shocase, Shazam and Anastasia Date.
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