Freelancer.com, a freelancing and crowdsourcing marketplace, has signed a definitive agreement to acquire California-based escrow service provider Escrow.com for $7.5m in cash.
The transaction, which is subject to regulatory approval, will allow Freelancer’s 15 million users to make more secure payments.
Go deeper with GlobalData
Following the acquisition, the staff of Escrow.com will continue to operate with the California-based business.
Freelancer said that the acquisition of Escrow.com will be funded by an oversubscribed new AU$10m placement of ordinary shares to institutional investors.
Escrow.com provides secure online payments and online transaction management for consumers and businesses on the Internet.
It reduces the risk of fraud by acting as a trusted third party that collects, holds and disburses funds according to buyer and seller instructions.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataEscrow.com has processed gross payments of $265m during the 2014 financial year, and claimed net revenue of $5m, with $1.2m in EBITDA and over $2.2bn in transactions to date.
Freelancer.com CEO Matt Barrie said: "This highly complementary acquisition will enhance the ability of our 15 million users to transact securely, and there are large opportunities for growth and synergies with core offerings. Finally, it is a strong cornerstone for entering the payments space."
