Nuvei to Buy U.S. Payment Provider Mazooma
April 19, 2021
Global payment technology firm Nuvei Corporation has entered into a definitive agreement to acquire gaming and sports wagering payment technology provider Mazooma Technical Services.
The deal is worth an initial $56m, but could be worth up to $315m if specific performance criteria are met over the three years after the acquisition closes.
The deal remains subject to the prior approval of the Toronto Stock Exchange, as well as customary closing conditions, but is expected to close during the second quarter of this year.
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Philip Fayer, Nuvei’s chair and CEO commented: “Mazooma will enhance and expand Nuvei’s portfolio of alternative payment methods with a leading ACH platform with both pay-in and pay-out functionality, developed and used exclusively for online gaming in the U.S.
“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 U.S. state. This acquisition will truly solidify our commitment to and presence in the U.S. online gaming and sports betting industry.”
The deal significantly expands the presence of Nuvei in the U.S. Mazooma is a specialist account-to-account payments provider in the U.S., ntegrated with the majority of gaming platforms and online gaming and sports betting operators in the country. It is a registered vendor in nine states, with permission in 12 states, and holds money transmitter licenses and exemptions in a total of 47 states.
It is also expected to process more than US$2 billion of ACH total volume.