Digital River Buys Canadian Co. LML for $103M
Digital River, Inc., a Minnetonka-based provider of cloud-based e-commerce solutions, said Monday that it plans to acquire Canadian company LML Payment Systems for $3.45 per share in cash, in a deal valued at $102.8 million.
Vancouver, British Columbia-based LML Payment Systems processes online payments for more than 14,000 small- to mid-size businesses, the companies said in a news release.
Two-thirds of LML’s voting shareholders must approve the deal, which the companies expect will be completed during the fourth quarter of this year or the first quarter of 2013. Digital River expects the acquisition to be accretive to its earnings in its 2013 fiscal year.
The acquisition will help Digital River to expand its global online payment processing business to companies of all sizes, and the company will also benefit from LML’s portfolio of banking, merchant, reseller, and development relationships, the companies said. In turn, the acquisition will enable LML to offer clients a broader set of international payment options, as well as opportunities to expand online business globally.
The combined entity is expected to handle more than $20 billion in online transactions for companies spanning many industries, including government, utilities, consumer electronics, event registration, and mobile payments.
“Our joint technologies and expert resources will create even more value for our combined client bases—helping them reduce time to market and providing access to new payments technologies and geographies,” Digital River CEO Joel Ronning said in a statement.
Digital River is among Minnesota’s 50 largest public companies based on revenue, which totaled $398.1 million in 2011.