Canadian electronic payment processing company Nuvei has agreed to acquire gaming and sports wagering payment technology firm Mazooma Technical Service.

Nuvei will pay approximately $56m and additional consideration, subject to the achievement of specific performance criteria, of up to a total maximum consideration of around $315m.

The company said it expected to pay approximately 24% of the consideration through the issuance of subordinate voting shares with the remainder to be paid in cash.

The transaction, which is expected to close in the second quarter of the year, is subject to the prior approval of the Toronto Stock Exchange and customary closing conditions.

Canada-headquartered Mazooma specialises in account-to-account payments in the US online gaming and sports betting.

The firm, which has money transmitter licenses and exemptions in a total of 47 states, is a registered vendor in nine states, with permission in 12 states.

Mazooma’s Instant Bank Transfer payment solution features same-day Automated Clearing House (ACH) for pay-ins and payouts.

Said to be integrated with most gaming platforms and online gaming and sports betting operators in the US, Mazooma is expected to process over $2bn of ACH total volume in 2021.

Nuvei chairman and CEO Philip Fayer said: “Mazooma will enhance and expand Nuvei’s portfolio of alternative payment methods with a leading ACH platform with both pay-in and pay-out functionality, developed and used exclusively for online gaming in the US.

“Because of low credit card acceptance rates, ACH is a must-have capability and solution in payments for online gaming and sports betting operators today.”

According to Fayer, the acquisition will offer Nuvei vendor registration, compliance, and operational infrastructure to address merchant’s requirements in any regulated US state, in addition to the necessary product functionality.

He added: “This acquisition will truly solidify our commitment to and presence in the US online gaming and sports betting industry.”

Last December, Nuvei inked a purchase agreement to acquire all the assets of integrated payment solutions provider Base Commerce.