Given the U.K.'s Financial Conduct Authority (FCA) recent approval of a $1.2 billion offer made back on March 23, the Isle of Man-based online payment provider Optimal Payments can now conclude the acquisition of the Skrill Group.
Optimal, which already manages other popular e-payment services like Neteller, Net+, and NETBANX, expects to complete the deal no later than August 10.
"The Directors of Optimal Payments believe that the acquisition will be transformational and value enhancing for Optimal Payments and will create a leading payment and digital wallet provider with significant international scale and reach that is well positioned to capitalize on the substantial and growing payment processing and digital wallet markets, particularly within the rapidly expanding online gambling sector," Optimal said of the deal.
"The Directors believe that there is a clear and compelling strategic and financial rationale for a combination of Optimal Payments and Skrill."
Through the acquisition, Optimal plans to become a market leader in the online and mobile payment industry, with the combined company generating $697 million in revenue.
"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 U.K.-based online payments business with the essential scale necessary to be highly successful. These opportunities are few and far between," said Chairman of Optimal Payments Dennis Jones.
"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."
Similarly, the President and Chief Executive Officer at Optimal Payments, Joel Leonoff stated, "The acquisition of Skrill will create a global tech champion in the fast growing digital payments space, and we believe represents a transformational leap forward that greatly accelerates our strategic plan.
"The combined business will be quoted in the UK and will be of sufficient scale for us to seek a main market listing and FTSE250 inclusion as soon as possible following completion of the acquisition."
The takeover operation has been financed through a combination of cash, new debt facilities, and a fully underwritten Rights Issue, with financial institutions like the Bank of Montreal, the Barclays Bank, and the Deutsche Bank committing to to provide credit facilities of €500 million.