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Paysafe agrees to acquire Merchants’ Choice for $470m

Paysafe Group has agreed to acquire almost all the assets of Delta Card Services, the holding company of Merchants’ Choice Payment Solutions (MCPS), for a consideration of $470m.

MCPS is a Houston, Texas-based payment processor. It is a data-focused full service payment processor for merchants and high-volume Independent Sales Organisations (ISOs) across North America.

The company offers card processing services to about 60,000 merchants across all the 50 states in the US and processes more than $14bn in sales volume annually.

The acquisition is expected to enable Paysafe to expand its processing scale and product-set for ISOs and merchants in the North American market.

It will also allow Paysafe to add point-of-sale (POS) activities to its Paysafe’s processing division.

The inclusion of POS activities is anticipated to boost the division's ability to offer processing for POS, online and order ahead payments all under a single real-time consolidated analytics platform. 

The transaction amount will be funded through a $380m of loan facility from various and the remaining from the existing cash holdings of the company. 

The acquisition is expected to close in this year’s third quarter.

MCPS earned a revenue of $446m and earnings before tax of $18.4m for the year ended 31 December 2016. 

Following the completion of the transaction, MCPS CEO Todd Linden will remain with the company as part of Paysafe’s North America processing operations.

While BMO Capital Markets acted as financial advisor to Paysafe in the transaction, Stikeman Elliott LLP served as its legal counsel. 

With a combined transactional volume of $48bn in 2016, Paysafe employs more than 2,200 people in 12 global locations. It connects businesses and consumers across 200 payment types in over 40 currencies.  

Image: Paysafe to acquire MCPS for $470m. Photo: Courtesy of Stuart Miles/