Specialised payments platform Paysafe Limited (PSFE) recently announced that it has signed a definitive agreement to acquire German fintech company viafintech in an all-cash deal. The financial terms of the deal have not been disclosed so far.
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With brands like Barzahlen/viacash and viacash under its belt, viafintech offers one of the largest bank independent payments infrastructures in the DACH region.
With this acquisition, Paysafe will gain a strong foothold in the German market, enabling cross-selling of viafintech’s alternative banking and payments solutions to its merchants around the world.
Following the acquisition, Glory Ltd., the majority shareholder of viafintech, will enter into a new strategic partnership with Paysafe. The two companies have signed a referral agreement that enables Glory to offer paysafecard, one of Paysafe’s leading eCash solutions, as a form of payment within its in-store payments kiosks. In return, Paysafe will offer Glory’s cash technology solutions to its merchants around the world.
The CEO of Paysafe, eCash and Open Banking, Udo Müller, said, “By combining viafintech’s leading solutions with our existing eCash and APM portfolio, we are well-positioned as an essential payments partner to challenger banks around the world as consumer banking habits continue to evolve.” (See Paysafe stock chart on TipRanks)
Recently, Compass Point analyst Michael Del Grosso reiterated a Buy rating on the stock. The analyst, however, lowered the price target to $13 from $19, which implies upside potential of 57.8% from current levels.
According to the analyst, although the company’s second-quarter results were strong, lower than expected guidance for the third quarter is a headwind. The analyst further opines that though the company’s platform remains unique with secular exposure to legalized U.S. iGaming, the lack of a U.S. internet gaming acquisition can act as an impediment for growth.
Consensus among analysts is a Strong Buy based on 8 unanimous Buys. The average Paysafe price target of $14.75 implies upside potential of 79% from current levels.
Paysafe scores a 7 out of 10 from TipRanks’ Smart Score rating system, indicating that the stock is likely to perform in line with market expectations. Shares have declined 17.2% over the past year.
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