Financial processing company EFT Canada is set to acquire the credit card gateway of a privately held US consulting firm.
Linterna Technologies Ltd. (LTL) will sell its technological assets to EFT for $650,000 by way of $325,000 in cash – of which $125,000 is due on the closing date – and $325,000 payable in common shares of EFT Canada. The remaining cash payment of $200,000 is due on the twelve month following the closing date, subject to delay and reduction if operating targets are met.
As well as offering mobile e-wallet options, the java based technology will provide users with a web-based point-of-sale (POS) interface that allows merchants to accept server to server credit card transactions.
“The technology being acquired from Linterna, represents an important part of EFT’s vision to place under one umbrella organization all services needed by our merchants to process electronic payments,” said Jonathan Pasternak, president of EFT Canada.
The acquisition is expected to close on 19 August 2011 and is subject to certain customary conditions, as well as the completion and signing of a definitive agreement and approval by the TSX Venture Exchange.