The Canadian payment technology company expects to expand into the US market through the acquisition of Mazooma, a sports betting payment technology service.
Canada.- The Toronto based payment technology company Nuvei Corporation has announced it will acquire Mazooma Technical Services, a gaming and sports wagering payment technology provider, for $56m.
According to a statement, the deal will involve an additional consideration subject to the achievement of specific performance criteria for a maximum of three years, up to a total consideration of around $315m.
Just under a quarter is expected to be paid via the issuance of subordinate voting shares. The remainder will be paid in cash.
Approval will be needed from the Toronto Stock Exchange to close the transaction, which is expected in the second quarter of 2021.
Nuvei’s interest in Mazooma stems from its strong presence in account-to-account payments in the US online gaming and sports betting market. It is a registered vendor in nine states, has permission in 12 states, and holds money transmitter licences and exemptions in 47 states.
Mazooma is also integrated with the majority of US gaming platforms and online gaming and sports betting operators and is expected to process more than $2bn of ACH total volume in 2021.