Deloitte Corporate Finance LLC (“DCF”) acted as advisor to Optimal Payments Plc, a leading global online payments and risk management provider, on two recent acquisitions: Santa Ana, California-based payment processing entity TK Global Partners L.P., doing business as Meritus Payment Solutions (“Meritus”) for consideration of $210 million; and Los Angeles-based online payments company Global Merchant Advisors, Inc. (“GMA”) for consideration of up to $15 million. Both transactions closed on July 23, 2014.
DCF advised Optimal Payments as part of its broader advisory role in connection with Optimal Payments' pursuit of acquisition targets globally. The closing of these two transactions marks nearly $1 billion in payments-related transactions on which DCF has advised over the past four months, further solidifying Deloitte's position as the global leader in Cards & Payments Consulting according to Kennedy Consulting Research & Advisory's "Consulting to the Banking Sector: Cards & Payments 2013" report.
"After careful evaluation of a number of potential candidates, Meritus stood out as the perfect choice on all fronts," said Joel Leonoff, president and chief executive officer, Optimal Payments. "Meritus' strong stakeholder relationships, multi-channel sales force, established presence with small- and mid-sized businesses in the U.S. and entrepreneurial spirit make them an ideal acquisition for Optimal Payments. We also believe that GMA is the perfect complement to that."
According to Sara Elinson, managing director, Deloitte Corporate Finance, "We are delighted to assist Optimal Payments with its acquisition strategy. These transactions are a testament to our ongoing commitment to advise and support Optimal Payments in executing its growth strategy and our ability to provide seamless global service to the payment sector overall."
Optimal Payments is a global provider of online payment solutions, trusted by businesses and consumers in over 200 countries and territories to move and manage billions of dollars each year. Merchants use the NETBANX® platform and services to simplify how they accept credit and debit card, direct-from-bank, and alternative and local payments; and the NETELLER® service to increase revenue and capture new customers.
Established in 2008, Meritus is a high growth and profitable organization with a similar entrepreneurial corporate culture and set of values to Optimal Payments. It has approximately 100 employees and processes more than $3 billion in transaction volume annually. Meritus has a proprietary technology platform and operates a streamlined and efficient merchant onboarding process. Revenues grew from$38.3 million in 2012 to $74.4 million in 2013 and strong growth is expected to continue.
Based in Los Angeles, California, GMA is a fast growing payments company serving small to medium sized businesses. The company focuses primarily on segments of the market that have been underserved by larger payment processing competitors, offering small merchants "industrial grade" processing solutions. Since its launch in 2010, GMA has built its merchant base and processing volume through its direct sales efforts and network of bank, third party processors and technology partners.
Deloitte Corporate Finance LLC, an SEC registered broker-dealer and member of FINRA, is an indirect wholly-owned subsidiary of Deloitte Financial Advisory Services LLP and affiliate of Deloitte Transactions and Business Analytics LLP. Deloitte Corporate Finance LLC provides deal execution and lead financial advisory services to large corporate, middle market, and private equity firms.