Elavon Acquires Sage Pay in a £232 million Deal
Late last year Elavon, a small company under US Bancorp, publicized that it would take over Sage Pay.
Sage Pay is a popular payment processing solution for many microbusinesses in the United Kingdom and Ireland. Sage Group, the mother company of Sage Pay, mentioned that deal happened in a cash transaction worth £232 million.
Elavon, the acquirer, offers merchant processing in over 30 nations battling market giants like Chase, Adyen, Visa, MasterCard, PayPal, and Stripe.
A Sage Pay review shows it is a smaller market player compared to the above names only managing a revenue of £41 million. Still, it is a lucrative and promising brand with a working profit of £15 million. Sage Group also hinted “a statutory profit on disposal of approximately £180 million when the deal completes.”
The agreement was reviewed by the Fed Reserve in US, and the Central Bank of Ireland was anticipated to cement by the second quarter of 2020.
The Elavon-Sage Pay merger is a continuation of the many strategic partnerships happening as companies seek to attract more customers in a market where every payment contributes to more revenue.
As a combined company, Elavon and Sage Pay will work tirelessly to compete against bigger players in the race to create the most revolutionary payment processing solutions for merchants—and any consumer who uses online payment methods and mobile money apps.
Elavon targets the entire European marketplace and intends to increase Sage Pay adoption in Ireland, the United Kingdom, among other countries.
“Elavon is a customer-centric brand that is assisting micro businesses prosper in a dynamic global market,” said Hannah Fitzsimons, Boss of Elavon Merchant Services, Europe. This merger opens a new pool of resources, unmatched talent, and ground-breaking tech to Elavon, which can be adopted all over Europe.”
Final Words
Mergers and acquisitions continue amid a cut-throat race to satisfy dynamic customer needs.
This acquisition further highlights a new trend that seeks to restructure online retail. Today’s marketplace market is split, not only as regards to the brands that sell products over the internet and in terms of the firms that manage what happens in the background.
Author Bio: Payment industry guru Taylor Cole is a passionate payments expert who understands the complex world of merchant accounts. He also writes non-fiction, on subjects ranging from personal finance to stocks to cryptopay. He enjoys eating pie on his backyard porch, as should all right-thinking people.