US-based financial technology company GreenBox POS has signed a non-binding memorandum of understanding (MOU) to acquire specialty retail payment processing company ChargeSavvy.
ChargeSavvy is a fintech firm that specialises in payments processing and point-of-sale (POS) systems, while GreenBox creates customised payment solutions by leveraging proprietary blockchain security.
Under the agreement, GreenBox will buy ChargeSavvy for $31.2m in restricted GreenBox common stock.
This all-stock deal represents a premium of $2.00 per share of GreenBox common stock.
GreenBox expects the deal to be immediately accretive, adding nearly $14m in EBITDA and $500m in processing volume annually.
The maximum total consideration for the acquisition can go up to $52m based on the pre-determined profitability performance metrics over the next one year.
The deal closing is subject to the completion of ChargeSavvy’s financial statements audit and customary closing conditions.
ChargeSavvy COO Jeff Nickel said: “Combining GreenBox’s Gen-3 proprietary blockchain technology with our expansive processing portfolio presents significant opportunities for cross-selling our solutions, as well as the ability to further penetrate the massive retail and e-commerce industries.”
GreenBox CEO Fredi Nisan said: “If completed, this accretive acquisition would mark a pivotal moment in GreenBox’s history by adding over $500m in processing volume to our Gen-3 platform and propelling us into the massive retail industry, as well as several other industries that we believe are ideally suited for our solutions.
“By leveraging our stock, which was priced at a significant premium of $2.00 per share, we expect to deliver a significant amount of shareholder value in the immediate term while cross-selling services and moving into other high-value, high-margin markets.
“We look forward to working together with the entire ChargeSavvy team as our technologies work together to disrupt the entire payment solutions market as we know it.”