SafeCharge set to acquire competitor CreditGuard

SafeCharge set to acquire competitor CreditGuard

Monday, December 15, 2014 Totally Gaming

SafeCharge has struck a deal to acquire rival payment services provider CreditGuard in a move it hopes will further strengthen its presence in the online payments sector.

The agreement is worth up to $8.6m (€6.8m), comprising an initial cash consideration of $8m and deferred consideration capped at $400,000. The amount remains subject to customary closing conditions.

SafeCharge specialises in providing payment services, risk management and IT solutions for online businesses – including a number of internet gaming operators such as Gala Interactive, an online gaming branch of betting operator Gala Coral. Italy-focused internet gaming platform BPG is also amongst the operators to have utilised SafeCharge’s services.

The acquisition of CreditGuard will enable SafeCharge to expand its operations into Israel. CreditGuard, which is based in Israel, offers a number of payment solutions and white-label technologies with secure payments gateway to a range of business.

David Avgi, chief executive of SafeCharge, said the firm’s entrance into the Israeli market will be an “exciting” move and is confident about its potential success in the country.

“CreditGuard is highly regarded within the payments industry, with a solid portfolio of clients across multiple market sectors and a vast knowledge and expertise in Enterprise IT infrastructures, networks and security,” Avgi said.

“This enables us to fast-track our entry into new verticals and take a strong position in the exciting Israeli market.”

Uriel Ben David, chief executive of CreditGuard, was equally as optimistic about the deal and outlined his own desire to help SafeCharge succeed in the Israeli market.

David said: “This collaboration will play a central role in expanding CreditGuard's technologies and services to local and international markets. We are excited to be joining the SafeCharge team who are true leaders and a respected player in the online payments space.”

The acquisition agreement comes shortly after SafeCharge was also able to boost its service offering in the European market after it was granted Issuing Approval from the MasterCard Europe arm of payment giant MasterCard.

An extension of SafeCharge’s Principal Membership, the approval will allow the firm to issue pre-paid MasterCard products that can be used for various online gaming activities in regulated European markets.

Avgi said: “The approval enables us to issue our own and co-branded pre-paid cards and is a significant step in building a new pillar to our business.”

In addition, SafeCharge has named Ali Farid Khwaja as executive vice-president of its new card issuing division.

Khwaja, who formerly served as a financial technology analyst at Berenberg, will begin his new role in February.

“We are excited to be continuing to expand our product offering, entering into a new and large market sector and welcome Ali to drive its growth,” Avgi said.

 

Tags: 
Latest
No alternative text provided

Making the Pragmatic move: Supplier gains Danish approval

No alternative text provided

'Huge honour': LVBet sponsors EUROVOLLEY tournament

No alternative text provided

Paradigm shift: Season-long sponsorship for Ball Street network

OtherLevels Q&A: Redefining the approach to player engagement

Gaming Products & Services Directory

The essential directory for the gaming industry