Payment processor and e-commerce software provider Digital River Inc. has acquired Netgiro Systems AB for $27 million in cash. The buy complements Digital River’s international payment platform.
Netgiro’s payment tools can support 20 online payment methods, including credit and debit card processing, direct debit, Internet bank payments, local bank transfers and checks. The company’s platform supports payment services in 40 countries.
“Netgiro is currently an important partner for Digital River’s global payments capabilities. By formalizing this relationship and combining Netgiro’s international payment platform with our existing world-class e-commerce infrastructure, we intend to accelerate our market-leading, global online transaction processing and payment capability,” says Joel Ronning, Digital River’s CEO. “Moving forward, we plan to take full advantage of the natural affinities between our product lines.”
The Netgiro business will continue operating from its current location in Stockholm, Sweden, and the company will deliver its technology as a stand-alone payment solution as well as an integrated part of Digital River’s e-commerce product line.
Under the terms of the agreement, Digital River acquired Netgiro and its operating subsidiaries in a cash transaction for approximately $27 million. In addition, the agreement also provides Netgiro shareholders with an earn-out opportunity based on Digital River and Netgiro achieving certain performance targets. Digital River expects the acquisition to be neutral to earnings in the near term. Other terms of the transaction were not disclosed.
“By joining forces with Digital River, we intend to further strengthen and accelerate our multi-region payment offering,” says Johan Hard, Netgiro’s CEO. “We believe that Netgiro’s and Digital River’s combined payment platforms will create a formidable solution when it comes to managing payments for online businesses. We look forward to delivering our clients even more growth opportunities through extended geographic reach and choice.”
Digital River is headquartered in Minneapolis with offices in major U.S. cities as well as Germany, England, Ireland, Luxembourg, Taiwan, Japan and China. The company’s e-commerce applications and services include site development and hosting, order management, fraud prevention, export controls, tax management, physical and digital product fulfillment, multi-lingual customer service, and strategic marketing services.
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