NETELLER parent to buy Skrill for €1.1bn
Optimal Payments revealed this week it wished to purchase Skrill in order to broaden the horizon of its online services.
Payments provider Optimal Payments - the parent group behind popular brand NETELLER - announced earlier this week that it had entered an agreement to purchase leading digital payment processor Skrill Group for an estimated €1.1bn.
Optimal Payments described the deal as "transformational and value-enhancing", as acquiring Skrill puts it in a dominating position to capitalise on the rapidly expanding international payment processing and digital wallet markets.
"We are taking advantage of an exceptional opportunity to acquire a business we know very well which, combined with Optimal Payments, will be a leading UK based online payments business with the essential scale necessary to be highly successful," said Dennis Jones, OP chairman.
"The board believes this transformational transaction will be earnings accretive for shareholders from the first full fiscal year of ownership, will further diversify our client base and, additionally, will enable us to deliver enhanced services to existing and prospective merchants and customers in all of our global markets."
As of yet it remains unclear as to whether or not the Skrill brand will continue to exist independently, or simply become a part of NETELLER.
"A better business will emerge"
Although they are warning that it may take some time for OP to raise the funds and for the transaction to go through officially, analysts are predicting that the enlarged group will be benficial for both customers and investors.
"We believe the combination of the two wallets will remove the friction created by competition for merchants and customers," said Ivor Jones of Numis Securities.
"We believe that a materially better business will emerge and that it will be able to optimise pricing and investment on technology and marketing."
Within hours of the deal going public, Optimal Payments shares spiked by an incredible 32%.
It also posted this week that it had enjoyed a 44% total rise in revenue, and an 83% increase in pre-tax profit over the course of 2014.
