M&A Update: IDT’s New Owner; ScanSource Buys POS Portal
Two recent deals further demonstrate the fertile M&A field in the payments space worldwide. London-based JAR Capital Limited has announced plans to acquire Gibraltar-based e-money issuer IDT Financial Services. Meanwhile, technology provider ScanSource Inc. has agreed to buy POS Portal, a Sacramento-based payment terminal and P2PE encryption technology provider that focuses largely on the SMB market.
JAR, an FCA-licensed asset manager, has executed a share purchase agreement to buy the entire share capital of IDT Financial Services Holding Ltd, parent company of IDT Financial Services Limited, which is licensed by the Gibraltar Financial Services Commission and operates across the European Economic Area as a principal member of Mastercard and Visa.
IDT was an early entrant in the prepaid market in Europe, launching the first instant-issue prepaid card in Europe in 2006, and later becoming a BIN sponsor or other prepaid program managers.
The terms of the acquisition, which is subject to GFSC approval and consent by the Gibraltar Minister with responsibility for financial services, were not disclosed. Following approval by the GFSC, IDT Finance is expected to be renamed JAR Bank Limited.
For more on the acquisition, watch this Featured Video.
Stateside, ScanSource Inc., a South Carolina-based provider of technology products and solutions, announced a definitive agreement to acquire POS Portal, a distributor of payment devices and services primarily to the SMB market segment.
The two companies sell through complementary solution delivery channels with little customer overlap, according to an announcement about the deal. ScanSource primarily serves the enterprise and midmarket merchant segments, with thousands of POS value-added resellers and system integrators as customers. POS Portal reaches the SMB merchant segment via relationships with the payment processors, independent sales organizations and many tablet-based POS software developers.
Under the agreement, the all-cash transaction includes an initial purchase price of approximately $144.9 million, plus an earn-out payment up to $13.2 million to be made on Nov. 30, 2017. The acquisition is expected to be accretive to earnings per share in the first year after acquisition, excluding one-time acquisition costs, according to ScanSource.
The acquisition is expected to close in the quarter ending September 30, 2017, subject to the satisfaction of customary closing conditions and receipt of regulatory approvals. Prior to the close, ScanSource and POS Portal will continue to operate as independent companies.