Identive acquires majority stake in German cashless payment provider
02 February, 2012
category: Contactless, Smart Cards
Identive Group Inc. has announced a deal to acquire a majority stake in Hamburg, Germany-based payment solution AG, a cashless payment system provider for stadiums, arenas and other types of entertainment venues.
payment solution’s systems use contactless smart cards to enable faster payment methods at event sites. The systems incorporate payment management software, smart cards and reader and communication infrastructure. Clients may purchase either a turnkey solution or a multi-year contract where payment solution operates and maintains the system in return for a revenue share.
The acquisition allows Identive to expand its European footprint in this segment. payment solution has a base of customers in the German Soccer Leagues and has penetrated the Eastern European market.
Identive brokered the deal through its Swiss-based subsidiary Bluehill ID AG on January 30. Under the terms of the deal, Bluehill entered into agreements with 18 of payment solution’s shareholders for approximately 58.8% of the company’s outstanding share capital. Identive is conducting a stock swap, issuing these shareholders 1,357,758 shares, or 2.4%, of Identive’s outstanding common stock. The transaction values 100% of payment solution shares at 4 million euros (approximately $5.3 million). payment solution’s outstanding debt is valued at 4.5 million euros (approximately $5.9 million).