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Paysafe to Acquire SafetyPay for $441M

Multinational online payments company Paysafe (PSFE) has agreed to acquire SafetyPay in an all-cash deal worth $441 million. The transaction is expected to close in the fourth quarter of 2021. With this deal, Paysafe is poised to benefit from SafetyPay’s relationships with banks in Latin America.

SafetyPay provides payments platform that allows E-commerce transactions through alternative payment methods. The company operates primarily in Latin America.

As per the terms of the deal, SafetyPay team will join Paysafe’s expanding eCash and online banking solutions’ team. The enlarged Paysafe eCash business will be able to offer eCash and open banking solutions in more than 60 countries with over one million distribution points. (See Paysafe stock charts on TipRanks)

The CEO of Paysafe, Philip McHugh, said, “Furthermore, by combining the capabilities and open banking network of both SafetyPay and PagoEfectivo with our existing solutions in processing, digital wallets and eCash, along with our deep expertise in specialized verticals such as iGaming, travel and digital goods, we can become the true market leader in the region and provide merchants with unique and powerful combinations to grow their business.”

On August 12, Bank of America Securities analyst Jason Kupferberg initiated coverage on the stock with a Buy rating and a price target of $15 (upside potential of 47.1% from current levels).

Kupferberg is of the opinion that Paysafe is well-poised to benefit from the rapidly growing U.S. iGaming market, given its proven go-to-market playbook, attractive value proposition for both iGaming merchants and consumers and established relationships and integrations with a majority of iGaming operators overseas and in the U.S.

Overall, the rest of the Street has a bullish outlook on the stock with a Strong Buy consensus based on 6 unanimous Buys. The average Paysafe price target of $15.83 implies upside potential of about 55.2% from current levels.

TipRanks data shows that financial blogger opinions are 100% Bullish on PSFE, compared to the sector average of 69%.

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