One of every five beauty purchases online is made via the Amazon marketplace, according to a new report.
The U.S. digital payment services firm will help Cielo expand in South America.
Cielo SA, a Brazil-based payments processor, plans to buy Merchant e-Solutions, a U.S.-based processor whose services include e-commerce and mobile payments. Cielo will pay $670 million for the U.S. firm and use its technology to boost its services in Brazil.
Merchant e-Solutions serves at least two e-retailers in the Internet Retailer Top 500 Guide: Motorcycle Superstore Inc. (No. 186) and Envelopes.com (No. 475). Merchant e-Solutions annually processes $14 billion worth of transactions for some 70,000 retailers, Cielo says. For the 12 months ended May 31, Merchant e-Solutions generated $124 million in revenue. 58% of the company’s year-to-date revenue for 2012 has come from e-commerce, Cielo says.
“The advanced technology developed by Merchant e-Solutions will provide Cielo with greater back-office process automation, flexibility and agility in developing new products and, consequently, will enable a lower time-to-market for new products and services,” Cielo says. “In addition, with the acquisition, Cielo gains a physical presence in Silicon Valley, a hotbed of technological innovation and currently the epicenter of the digital revolution in payments.”
Cielo was advised on the transaction by Goldman, Sachs & Co. Merchant e-Solutions was advised by J.P. Morgan.