Byrne returns to his CEO post after his three-month medical leave of absence.
The deal expands Digital River’s payment offerings to small retailers.
Digital River Inc., an e-commerce technology provider mainly for software and web game developers, says it will buy LML Payment Systems Inc. for $102.8 million in a cash transaction. LML will broaden Digital River’s payment processing services to smaller retailers beyond its traditional client base of midsized to large retailers. The acquisition will close either late this year or in early 2013, subject to approval from LML shareholders, Digital River says.
Once the acquisition is complete, Digital River says it will annually handle more than $20 billion in online transactions for companies that sell software, consumer electronics, online games and event registrations, the company says. The deal will also help it to expand beyond those core markets and add new offerings, like mobile payments, says Ed Merritt, Digital River’s vice president of investor relations and treasury.
Vancouver, British Columbia-based LML, which provides online transaction and authentication processing for 14,000 small and midsized retailers, operates through subsidiaries LML Payment Systems Corp. in the United States and Beanstream Internet Commerce Inc. in Canada.
“This investment reflects our ongoing commitment to expanding our Digital River World Payments solution and continuing to diversify our global commerce business across multiple vertical markets,” says Joel Ronning, Digital River’s CEO. “Our joint technologies and expert resources will create even more value for our combined client bases—helping them reduce time to market and providing access to new payments technologies and geographies."
In 2007, Digital River bought European payment systems company Netgiro Systems AB to increase its geographic reach and offerings. In June, Digital River joined with payments transactions company First Data Corp. to add a full card acquiring service for U.S. credit and debit card payment processors, in which Digital River acts as a reseller of First Data services to its clients.
Microsoft Corp, No. 74 in the Internet Retailer Top 500 Guide, and Philips Electronics N.V., No. 341, report using Digital River for web hosting.