Payments platform Paysafe Limited agreed to sell its direct marketing payment processing business line, Paysafe Direct, to omnichannel payments provider Kort Payments, which is 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, Paysafe said in a Tuesday (Feb. 11) press release.
Subject to finalizing certain items related to transition services, the transaction is expected to close in 30 days, according to the release.
The transaction positions Paysafe to “sharpen our focus on Paysafe’s ideal customers and verticals in the experience economy,” Paysafe CEO Bruce Lowthers said in the release.
“The divestiture of our direct marketing payment processing business reflects our commitment to portfolio and resource optimization to focus on our largest growth opportunities as a company,” Lowthers said in the release. “This accelerates our transformation by exiting a non-strategic business line, bringing a close to the repositioning of our Merchant Solutions segment.”
Kort Payments said in a Tuesday press release that its acquisition of Paysafe Direct furthers its “aggressive growth strategy” and “propels” the Canada-based company into the United States market.
“The acquisition of Paysafe’s direct marketing payment processing business represents a quantum leap for the company and aligns with our commitment to providing innovative solutions across North America,” Leonoff said in the release. “The Kort team has extensive experience in managing complex industry verticals and has proven success in this sector.”
Kort Payments provides compliance, risk management and payment processing services and has worked with companies in eCommerce and payment processing for more than 25 years, according to the release.
The company acquired Barnet Technologies, a Canadian software company known for its point-of-sale systems, in September. Kort Payments said at the time in a press release that its team will scale Barnet’s technology, integrate that technology with its own payment platform and provide a holistic solution for clients.
It was reported Thursday (Feb. 6) that Paysafe was considering a sale after getting takeover interest.
During a November earnings report, Paysafe said it saw growth in core segments, gains in average transactions per active users of digital wallets and expanding reach in Europe.
