- Paysafe has agreed to sell its direct marketing payment processing business, Paysafe Direct LLC, to KORT Payments, an omnichannel payments provider led by Paysafe’s founder and former CEO, Joel Leonoff.
- The transaction includes reseller and merchant contracts, dedicated technology, and employees related to the business, with consideration largely consisting of annual earnout payments over the next five years.
What happened: Paysafe to sell direct marketing payment processing business to KORT payments
Paysafe Limited, a leading payments platform, has entered into a definitive agreement to sell substantially all assets related to its direct marketing payment processing business line, Paysafe Direct LLC, to KORT Payments.
Paysafe Direct LLC processes payments for direct marketing companies and high-volume, card-not-present transactions across various industries. The transaction includes reseller and merchant contracts, technology, and employees. The deal’s consideration mainly consists of annual earnout payments over the next five years. It is expected to close within 30 days, pending final transition-related services.
Bruce Lowthers, CEO of Paysafe, stated: “The sale of our direct marketing payment processing business aligns with our strategy to optimize our portfolio and focus on our largest growth opportunities.”
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Why it’s important
This divestiture enables Paysafe to focus on its core business segments, such as merchant payment processing and digital wallets, ultimately enhancing long-term shareholder value. Moreover, by exiting a non-strategic business line, Paysafe aims to improve its financial performance and reduce exposure to higher-risk verticals.
On the other hand, for KORT Payments, the acquisition signifies a substantial expansion into the U.S. market and aligns perfectly with its aggressive growth strategy. Furthermore, the integration of Paysafe Direct’s assets and expertise is expected to significantly strengthen KORT’s position in the omnichannel payments sector.
