NAPLES, FLA—ACI Worldwide (NASDAQ: ACIW), a leading global provider of electronic payment and banking solutions, and PAY.ON, a leader in eCommerce payment gateway services, today announced that they have entered into a definitive transaction agreement. Under the terms of the agreement, ACI will acquire 100 percent of the equity of PAY.ON in a combination of cash and stock valuing the company at €180 million (approximately $200 million).
Based in Munich, Germany, PAY.ON delivers a white label global payment gateway solution to payment services providers (PSPs) and acquirers globally. PAY.ON’s solution features connectivity to more than 300 alternative payment methods and card acquirers in more than 160 countries. This global coverage helps merchants and PSPs to increase international revenues, dramatically reduce costs and risk, and accelerate market expansion.
PAY.ON’s advanced SaaS-based eCommerce gateway solution complements and strengthens ACI’s UP Retailer Payments offering, positioning ACI as a highly differentiated omni-channel payments leader. The combined ACI/PAY.ON solution provides merchants and PSPs the ability to deliver a seamless omni-channel customer payment experience in any retailer modality – in store, mobile, online – with both on premise and SaaS delivery options.
The global eCommerce market is growing rapidly, with global eCommerce volume expected to grow at a 17 percent CAGR through 2019. In addition, as the global eCommerce market continues its rapid ascent, the need for cross-border eCommerce payments is a particularly fast growing sector. With business and consumer demands continuing to globalize, cross-border eCommerce volume is expected to grow at an 18 percent CAGR over the same period.
“PAY.ON brings world-class eCommerce payment and Card Not Present (CNP) capabilities to ACI. Its SaaS-based business model, coupled with its strength in alternative payments and cross-border capabilities, allow us to expand our eCommerce platform broadly into new geographic regions,” said Phil Heasley, president and CEO, ACI Worldwide. “Our acquisition of ReD in 2014 strengthened our position as a market leader in the CNP payments risk management market, and this acquisition further solidifies our position as a leading omni-channel payments provider.”
“We’re excited to become part of the ACI team, and are pleased that our eCommerce gateway technology will play a strategic role in fulfilling ACI’s Universal Payments vision of enabling a complete set of end-to-end payment services,” said Markus Rinderer, CEO and co-founder, PAY.ON. “The combination of our eCommerce payment gateway capabilities and ACI’s UP Retailer Payments offering will give merchants around the world the most complete, flexible and consistent omni-channel payments experience.”
ACI’s Universal Payments (UP) portfolio of solutions orchestrates all aspects of payment processing for any payment type, any channel, any currency and any network.
PAY.ON is expected to have minimal impact to revenues and earnings for the remainder of fiscal 2015. ACI plans to use the existing credit facility to finance the transaction. Accompanying third quarter 2015 earnings materials and conference call information can be found at http://investor.aciworldwide.com/.
About PAY.ON
PAY.ON delivers white label global payment gateway solutions to payment service providers, ISOs, acquirers, ISVs, and VARs, enabling them to fully outsource payment transaction processing or integrate a gateway-to-gateway solution. The core payment gateway provides cross-border payment processing, PCI-compliant merchant boarding, and access to more than 300 domestic and international acquirers and alternative payment methods. Modular solutions are configured to specific business cases, with additional fraud prevention tools, monitoring and reporting, and business services. PAY.ON enables payment providers to rapidly increase international revenues, reduce costs and risk, and accelerate market expansion.
Headquartered in Munich, PAY.ON also has offices in New York and Salzburg.
About ACI Worldwide
ACI Worldwide, the Universal Payments company, powers electronic payments and banking for more than 5,600 financial institutions, retailers, billers and processors around the world. ACI software processes $13 trillion each day in payments and securities transactions for more than 300 of the leading global retailers, and 18 of the world’s 20 largest banks. Through our comprehensive suite of software products and hosted services, we deliver a broad range of solutions for payment processing; card and merchant management; online banking; mobile, branch and voice banking; fraud detection; trade finance; and electronic bill presentment and payment. To learn more about ACI, please visit www.aciworldwide.com. You can also find us on Twitter @ACI_Worldwide.