Canadian electronic payment processing company Nuvei has agreed to acquire Israel-based crypto payment startup Simplex for approximately $250m in cash.

The deal, subject to regulatory approval, is expected to close in the second half of 2021.

Established in 2014, Simplex provides fiat infrastructure users to buy or sell cryptocurrencies using credit and debit cards.

It acts as a fiat-cryptocurrency gateway connecting market participants including exchanges, brokers, wallet and liquidity providers.

Simplex’s proprietary fraud and risk management tools are designed to deliver a zero-chargeback guarantee to its customers, leading to higher conversion rates.

Simplex is a principal member of the Visa network and has permission to issue Visa cards.  The processed approximately $500m of total volume last year and is expected to process over $2bn in payments this year.

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The acquisition will add future banking and card issuing capabilities to Nuvei’s portfolio in addition to providing an electronic money institution (EMI) license to offer IBAN accounts to end users and corporations.

Nuvei chairman and CEO Philip Fayer said: “Simplex’s infrastructure is a natural fit for Nuvei’s Native Commerce Platform, further strengthening the capabilities and overall value proposition of our single-integration approach to payments. We are excited to welcome Simplex to the Nuvei team.”

Simplex co-founder and CEO Nimrod Lehavi added: “By joining Nuvei, Simplex will be able to fulfill its promise of bridging the gap between the blockchain space and the traditional finance world.”

Recent deal by Nuvei

Last month, Nuvei agreed to acquire gaming and sports wagering payment technology firm Mazooma Technical Service.

In December last year, the company agreed to acquire all the assets of integrated payment solutions provider Base Commerce.

Earlier last year, Nuvei signed an agreement to sell CreditGuard to Israeli financial institution Max Group.