Recharge taps gaming payments with Startselect acquisition
Dutch paytech Recharge has acquired Startselect, a European digital gift and gaming cards company, for an undisclosed sum.
The acquisition is thought to include the entire Startselect platform, which distributes a range of prepaid gift cards for predominantly gaming brands.
Recharge expects the deal to diversify its product offering amid its “aggressive growth path“, given that the acquired company (founded in 2009 and headquartered in Eindhoven, the Netherlands), has a strong penchant for the digital gaming market.
Startselect will extend Recharge’s consumer label offering and country-specific labels, which include Beltegoed in the Netherlands, Guthaben in Germany, and Mobiletopup in the UK.
It marks the company’s latest attempt to consolidate the digital prepaid payments market and its position within that market, claiming that it’s now on track to generate €750 million in annual sales next year.
Reflecting on its first achievement in its M&A strategy, Günther Vogelpoel, Recharge’s CEO, recognises consolidation as a recurring theme in fintech, and emphasises that he has “no doubt in the value of this combination for our company”.
The deal is also thought to include the Startselect workforce, which according to LinkedIn, equates to just over 50 employees.
“Combining our strengths and capabilities leads to a powerful competitive position in the industry,” continues Vogelpoel. “Together, with our larger scale, we can offer an even better service to prepaid users worldwide.”
Max Gudden, founder of Startselect, describes the sale to Recharge as “a new chapter” for his firm.
This announcement succeeds Recharge’s expansion to the US and Canada in July, in collaboration with US payments provider Blackhawk Network.
Recharge has also confirmed it plans to close between two and three more acquisitions within the next 12 months.