NEOVIA acquires Optimal Payments

20th Jan 2011 17:24

Online banking services provider NEOVIA Financial is buying online payments provider Optimal Payments for up to $50m (£31.3m) and the holding company will change its name to Optimal Payments. The Montreal-based business processes more than $2.5bn of transactions each year. One of its main attractions is its strong North American presence and the good fit with NEOVIA's existing business. Optimal made a pre-tax profit of $5.1m on revenues of $57.7m in the year to December 2009. The profit would have been higher without shareholder related expenses which will not continue. NEOVIA is initially paying $25m in cash and $2.5m in shares. A further $2.5m is payable over 18 months, subject to indemnities. A further $20m plus interest will be payable in April 2013. This figure could reduce if performance targets are not met in 2011 and 2012. Joel Leonoff, the founder of Optimal Payments, is joining the NEOVIA board as co-chief executive with Mark Mayhew. NEOVIA says that its second half revenues in 2010 will be similar to the first half.