Mergers & Acquisitions

Mergers & Acquisitions

July 15, 2011

EFT Canada to Purchase LTL's Technology Assets For $650,000

According to a press release, Canada’s leading financial processing company, EFT Canada Inc is going to purchase the technology assets of Linterna Technologies Ltd. in a $650,000 deal.

In a press release, EFT Canada said that the acquisition is expected to close on August 19th, 2011 depending on customary conditions and approval by the TSX Venture Exchange. Of the total payable, $325,000 will be paid in cash, and $325,000 in common shares of EFT Canada. The remaining cash payment of $200,000 is due on the twelve month following the closing date, the company further revealed.

LTL is an Ontario based electronic transaction processing consulting firm specializing in operational processes, banking relationships and fraud related controls. Through its java based software, the company provides its users a web-based point of sale interface for server to server credit card transactions. It gives merchants the ability for a variety of mobile e-wallet options. The technology features fraud detection system which can be integrated with a number of third-party services. This feature will enable EFT Canada to expand its product offering beyond just financial transactions.

As part of the agreement, James Watt, a principal of LTL, will join EFT Canada as consultant in two year agreement.   EFT will be creating and filling two new employment positions to support the new credit card gateway platform.

With SMEs increasingly relying on Internet based services to manage their businesses, there is a growing demand for secure transaction processing services, complemented by reliable support. EFT Canada which is focused on providing a business solution to SMEs is believed to have taken an important step through the acquisition of the LTL credit card gateway technology. The newly acquired assets will enable the company to transact in EFT's, debit and credit card transactions. Once the acquired asset has been integrated, in addition to electronic funds transfer, EFT Canada will be able offer its client base of over 800 SME's, credit card processing services. EFT Canada believes the acquisition will allow it to significantly increase gross revenues.

“The technology being acquired from Linterna, represents an important part of EFT's vision to place under one umbrella organization all services needed by our merchants to process electronic payments. Moreover, we anticipate excellent long-term value and shareholder appreciation in the combined entity,” President of EFT Canada Jonathan Pasternak explained in a statement.

Madhubanti Rudra is a contributing editor for TMCnet. To read more of her articles, please visit her columnist page.

Edited by Rich Steeves

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