Trintech Buys Checkline for US $44 Million
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Cyril McGuire, executive chairman of Trintech, said the acquisition of Checkline with its 65 staff would strengthen the group's position in Europe and open further opportunities in the m-commerce market.
One of Checkline's major attractions is its string of blue-chip customers, including American Express, HSBC, Bank of Scotland, Heathrow Express, and the U.K. Post Office. It also has strategic relationships with NatWest, De La Rue and the Cauldwell Group.
Another attraction for Trintech is Checkline's extensive experience in secure payments, where it claims to have a 15-year track record. The company also has a product range that includes the U.K.'s first bank-approved mobile payment system to use GSM phone technology.
"With Trintech's PayWare range of products, Checkline can now offer complete 'end to end' e-payment solutions," said Mirpuri.
To pay for the acquisition, Trintech will issue ordinary shares equivalent to 1.2 million American depositary shares and pay US $10 million in cash. In addition, the deal calls for a two-year performance earn-out of approximately US $5 million.
Trintech, which is based in Ireland, will improve its presence in key European markets, especially the U.K. and Spain, with the purchase of Checkline. Its own product range is deployed in over 35 countries, including the U.S. where it has a Californian base.