UK payments firm DataCash is buying privately-owned Proc Cyber Services, a provider of payment processing services predominantly to the online gaming markets, in an all-share deal worth £61 million.
Under the deal, Proc Cyber founder and chairman Ashley Head will receive 44,913,111 DataCash shares. The deal values Proc Cyber at £61.3 million based on a share price of 136.5 pence per ordinary share.
Following the transaction, Head will hold 50% of the enlarged group and become non-executive chairman.
DataCash says the acquisition will provide opportunities to cross-sell Proc Cyber's services to its own customers and will also provide increased software development capability.
David Bailey, chairman of DataCash, says: "The combination of DataCash and Proc Cyber will enhance the group's product set, market competitiveness and market opportunity. The two companies are complementary in their activities and the combination creates a business that will be well placed to support the payment processing needs of the online gaming industry, cross-border retailers, international telecoms operators and others in the fast-growing, but increasingly complex, e-commerce world."