Multicurrency digital payment company Fintrax will add Planet Payment's expanding international processing reach through a pending acquisition.
The two companies on Friday announced a definitive agreement under which Fintrax will acquire Planet Payment for $4.50 per share in cash.
Founded in 1985, Fintrax Group provides multi-currency digital payment processing, providing international shoppers, merchants, partner banks and acquirers covering 34 markets. Planet Payment is a provider of international payment processing and multi-currency processing services in 23 countries and territories across the Asia Pacific region, North America, the Middle East, Africa and Europe through its 76 acquiring bank and processor customers.
Planet Payment has been extending that reach through a series of partnerships, including a collaboration with Visa that reaches merchants across the globe; an initiative to book point of sale technology in South Africa; and engagement with local technology companies to boost currency conversion in Canada.
The Board of Directors of Planet Payment has unanimously approved the transaction, which is subject Planet Payment’s stockholders tendering a majority of Planet Payment’s outstanding shares on a fully diluted basis prior to the expiration of the tender offer, certain regulatory approvals and other customary closing conditions.
In connection with the execution of the definitive agreement, Planet Payment’s directors and executive officers and certain shareholders, representing an aggregate of approximately 28% of the company’s outstanding shares and derivative securities, have entered into support agreements with Fintrax pursuant to which they have agreed to tender their shares into Fintrax's offer.