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Optimal Payments to buy Skrill for EUR 1.1 bln

2015-03-23 13:42:00| Telecompaper Headlines

(Telecompaper) UK-based online and mobile payment services provider Optimal Payments announced an agreement to acquire Skrill, a provider of prepaid services in Europe, for EUR 1.1 billion including debt. Skril's holding company Sentinel is owned by the private equity funds CVC, Investcorp and other shareholders. They will receive EUR 720 million cash and a 7.9 percent stake in the merged group. The deal values Skrill's equity at 9.4 times EBITDA for the year to September, including expected synergies from the merger of EUR 40 million per year. Skril provides a range of digital wallet services, including the paysafecard for online purchases, while Optimal Payments operates the online money transfer service Netelller. Optimal Payments has received backing from its shareholders to raise GBP 451 million in a rights issue. A new credit facillity of EUR 500 million will also support the acquisition plans. Subject to shareholder approval and the rights issue, the acquisition is expected to close in Q3. 

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