Nuvei takes US igaming and sports betting steps with M&A
Payment specialist lands initial $53m deal for Mazooma as it banks on ACH capabilities to drive success
Payment technology firm Nuvei has taken its first steps into the US igaming and sports betting industry after acquiring fellow payment solutions provider Mazooma for $56m (£40.1m).
The M&A also includes an additional consideration payment subject to performance criteria over a maximum three-year period, up to a maximum of $315m.
Approximately 24% of this future consideration would be paid via the issuing of subordinate voting shares, with the remainder handed out in cash.
Mazooma is a US-focused igaming and sports betting payment technology provider and is a registered vendor in nine states.
Mazooma is also allowed to operate with permissions in 12 states, and holds money transmitter licences and exemptions in a total of 47 states.
The deal is expected to close in Q2 subject to customary conditions and the approval of the Toronto Stock Exchange.
One of the keys reasons Nuvei took an interest in Mazooma was due to the latter’s same-day Automated Clearing House (ACH) capabilities with its instant bank transfer payment solution.
Philip Fayer, Nuvei CEO, 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. Additionally, this acquisition will not only give Nuvei the necessary product functionality, but also the vendor registration, compliance, and operational infrastructure to address merchant’s requirements in any regulated US state.
“This acquisition will truly solidify our commitment to and presence in the US online gaming and sports betting industry,” he added.