Nuvei Corporation, a global payment technology company, has signed a definitive agreement to buy Mazooma Technical Services Inc, a gaming and sports wagering payment technology company based in the United States, for $56 million.
The transaction requires a potential additional consideration of up to $315 million, contingent on the achievement of specific performance requirements.
The issuance of subordinate voting shares is projected to account for about 24 percent of the total consideration, with the remainder being paid in cash. The deal is scheduled to close in the second quarter of 2021, subject to the Toronto Stock Exchange’s prior approval and customary closing conditions.
Enhancement and expansion
Nuvei’s chair and CEO, Philip Fayer, explained: “Mazooma will enhance and expand Nuvei’s portfolio of alternative payment methods with a leading Automated Clearing House (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.”
Account-to-account US payment provider
Mazooma is a leading account-to-account payments provider in US online gaming and sports betting, with licences and exemptions in 47 states. Mazooma is currently a licenced vendor in nine states, with approval in 12 states, and money transmitter licences and exemptions in 47 states.
The company’s Instant Bank Transfer payment system offers same-day ACH for pay-ins and payouts, and is linked to 11,000 financial institutions in the US via a collaboration with Plaid.
The company is expected to process more than $2 billion in ACH total volume in 2021, thanks to its integration with the majority of US gaming sites and online gaming and sports betting operators.