Online payments specialist Paysafe (PAYS) is now a ‘payments powerhouse’ after its €1.1 billion (£800 million) merger with Skrill, according to chief executive Joel Leonoff.
The deal, which completed on 10 August 2015, is already paying off according to a trading statement published today and could lead to Paysafe’s inclusion in the FTSE 250 index this March.
‘We are delivering on the targets we set ourselves as part of our strategy to create a payments powerhouse across digital wallets, payment processing and prepaid products and services,’ says Leonoff.
‘Our positive momentum, which continued through the fourth quarter, provides a strong foundation as we head into the new financial year.’
Annual revenue hit $600 million in 2015 and underlying earnings before interest, tax, depreciation and amortisation (underlying EBITDA) was $150 million.
"This has been a transformational year for our business,’ says Joel Leonoff.
‘Revenue and underlying earnings have grown strongly and the Skrill acquisition significantly enhances our global scale.’
Early analyst estimates published after the Skrill deal pitched full year revenue and underlying EBITDA expectations at $558.1 million and $138.6 million.
Paysafe, which completed the switch from AIM to the main market on 23 December 2015, will be eligible for inclusion in the FTSE 250 index in March this year.
In the first half of 2015, Paysafe – previously known as Optimal Payments – was hit by slowing growth because of its high dependence on one large customer in Asia.
Buying Skrill reduces Paysafe’s overall exposure to this struggling client from 29% of revenue in the first half of the year to around 20% on a pro-forma basis.