Netherlands-based e-commerce provider Avangate has agreed to acquire American payment processing firm 2Checkout to expand its payment flexibility and broaden market reach.
2Checkout, a portfolio company of Chicago Growth Partners and Trident Capital, allows firms to accept online and mobile payments from buyers worldwide with localized payment options.
As part of the transaction, the two firms will combine to offer flexible payment model options with the ability to pick and choose the products and services that best fit each customer's unique needs.
The acquisition will allow Avangate to conduct business and settle transactions in more than 30 languages and 130 local currencies.
The combined firm will use the 2Checkout name and will be led by Avangate CEO Alex Hart, while 2Checkout current CEO Ken Benvenuto will continue to serve as a board member and advisor.
Commenting on the acquisition, Hart said: “The resulting company creates a unique offering in the marketplace, bringing added scale and flexibility that will help merchants further accelerate revenue growth. The acquisition of 2Checkout will enhance Avangate's ability to simplify the complexity of selling products and services globally, whether via one-time purchases or recurring transactions."
Benvenuto said: "Joining the 2Checkout payment service provider and gateway capabilities with Avangate's subscription management and merchant of record services will position the company for significant growth in attractive markets around the world. By coming together, we can lead the eCommerce and subscription management space, accelerate our payment offerings, and expand our footprint worldwide.”
The financial terms of the deal were not disclosed.