E-commerce solutions provider Digital River has acquired LML Payment Systems, which will expand its customer base and cloud-based commerce portfolio considerably.
The Vancouver, Canada-based LML specializes in electronic payment processing, risk management and authentication services. LML also typically targets and processes online payments for more than 14,000 small to mid-sized merchants, while Digital River has concentrated on the enterprise set.
Specifically, Digital River will be taking advantage of LML's customer base, which mainly involves banking, merchant, reseller and developer customers. Digital River will also be looking to utilize LML's mobile payments solution, which might be the bigger motivation behind all of this.
But LML will be getting something out of the deal too as it now gets to expand its relationships internationally with bigger businesses worldwide.
Thus with this merger, Digital River asserts that the combination of these two "complementary card-not-present payments businesses" will boost its global payment processing rate to handle more than $20 billion in online transactions for tens of thousands of companies.
Minneapolis-based Digital River has agreed to pay $102.8 million in USD at $3.45 per share in an all cash transaction to acquire LML Payment Systems. The transaction is expected to close either during the fourth calendar quarter of 2012 or the first quarter of 2013.