Digital River Completes Acquisition of LML Payment Systems
Digital River, Inc. announced that it has completed its previously-announced all-cash acquisition of LML Payment Systems Inc. Based in Vancouver, British Columbia, LML Payment Systems is a leading provider of electronic payment processing, risk management and authentication services. Digital River announced the definitive agreement to acquire LML Payment Systems on Sept. 24, 2012.
The acquisition joins two complementary card-not-present payments businesses, positioning Digital River to further capitalize on its global success in online payment processing. Collectively, the companies will handle more than $20 billion in global online transactions for tens of thousands of companies across a broad range of industries, including software, consumer electronics, government, utilities, event registration and mobile payments. The acquisition is expected to be accretive to Digital River's earnings in its 2013 fiscal year.
"For more than 15 years, some of the world's leading brands have relied on Digital River to handle their online payments on a global basis," said Tom Donnelly, Digital River's president and COO. "The completion of this acquisition is another affirmation of our ongoing commitment to expand our payment services. We fully intend to leverage this acquisition to offer our combined client bases new capabilities and more revenue opportunities across a broader range of vertical and geographic markets."
"We believe this acquisition will drive value for Digital River's stockholders and the customers of our newly combined companies," added Souheil Badran, senior vice president and general manager for Digital River World Payments. "With the addition of LML Payment Systems, our World Payments solution is in an even stronger position to lead in our industry."
The acquisition was approved at a meeting of LML Payment Systems shareholders on Jan. 7, 2013, and was formally completed on Jan. 10, 2013, following satisfaction of applicable regulatory requirements. As a result of the acquisition, Digital River acquired indirect ownership of 28,246,684 common shares of LML Payment Systems, representing 100% of the issued and outstanding common shares of LML Payment Systems. Concurrently with the completion of this acquisition, LML Payment Systems was amalgamated with a Digital River subsidiary and the amalgamated company will continue operating under the name "LML Payment Systems Inc." As a result of the completion of the acquisition, trading in shares of LML Payment Systems has been permanently discontinued. LML Payment Systems shareholders will receive U.S. $3.45 per share in cash for their shares.