Enhances global e-commerce platform with expanded global payments offering
Digital River, Inc. (NASDAQ:DRIV), a leading provider of global
e-commerce solutions, today announced that it acquired Netgiro Systems
AB. Sweden-based Netgiro is one of the leading payment service
providers in Europe.
"Netgiro is currently an important partner for Digital River's
global payments capabilities. By formalizing this relationship and
combining Netgiro's international payment platform with our existing
world-class e-commerce infrastructure, we intend to accelerate our
market-leading, global online transaction processing and payment
capability," said Joel Ronning, Digital River's CEO. "Moving forward,
we plan to take full advantage of the natural affinities between our
product lines."
Built to support the complex and real-time demands of online
commerce, Netgiro's platform can support 20 online payment methods,
ranging from credit and debit card processing, to direct debit,
Internet bank payments, local bank transfers and checks. Netgiro's
platform supports payment services in 40 countries and is used by an
industry-leading client base.
The Netgiro business will continue to operate out of its current
location in Stockholm, Sweden. Netgiro will continue to deliver its
technology as a stand-alone payment solution as well as an integrated
part of Digital River's e-commerce offering.
"By joining forces with Digital River, we intend to further
strengthen and accelerate our multi-region payment offering," said
Johan Hard, Netgiro's CEO. "We believe that Netgiro's and Digital
River's combined payment platforms will create a formidable solution
when it comes to managing payments for online businesses. We look
forward to delivering our clients even more growth opportunities
through extended geographic reach and choice."
Under the terms of the agreement, Digital River acquired Netgiro
and its operating subsidiaries as part of a cash transaction for
approximately $27 million. In addition, the agreement also provides
Netgiro shareholders with an earn-out opportunity based on Digital
River and Netgiro achieving certain performance targets. Digital River
expects the acquisition to be neutral to earnings in the near term.
Other terms of the transaction were not disclosed.
About Netgiro Systems
Founded in 1997, Netgiro Systems is a leading payment service
provider based in Europe. Today, e-merchants from around the world use
Netgiro's services to offer their regional customers relevant local
online payment methods and ultimately generate increased sales.
Netgiro's payment solution, which is built on a high caliber platform
and back-office services, can support 20 localized online payment
methods, ranging from credit and debit cards, to direct debit,
Internet bank payments, local bank transfers and checks. Headquartered
in Stockholm, Sweden, Netgiro handles payment services in 40
countries.
About Digital River, Inc.
Digital River, Inc., a leading provider of global e-commerce
solutions, builds and manages online businesses for more than 40,000
software publishers, consumer technology manufacturers, distributors,
online retailers and affiliates. Its multi-channel e-commerce
solution, which supports both direct and indirect sales, is designed
to help companies of all sizes maximize online revenues as well as
reduce the costs and risks of running an e-commerce operation. The
company's comprehensive platform offers site development and hosting,
order management, fraud prevention, export controls, tax management,
physical and digital product fulfillment, multi-lingual customer
service, advanced reporting and strategic marketing services.
Founded in 1994, Digital River is headquartered in Minneapolis
with offices in major U.S. cities as well as Cologne, Germany; London,
England; Shannon, Ireland; Luxembourg, Luxembourg; Taipei, Taiwan;
Tokyo, Japan; and Shanghai, China. For more details about Digital
River, visit the corporate Web site at www.digitalriver.com or call
952-253-1234.
Forward-Looking Statements
In addition to the historical information contained herein, this
press release contains forward-looking statements, such as statements
regarding the Company's, and the combined companies', anticipated
future performance, including the ability of the combined companies to
integrate e-commerce and payment offerings; as well as statements
containing the words, "believes," "intends," "expects" and similar
words. Such forward-looking statements involve known and unknown
risks, uncertainties and other factors which may cause the actual
results, performance or achievements of the Company, or industry
results, to differ materially from any future results, performance or
achievements expressed or implied by such forward-looking statements.
Such factors include, among others: the Company's variability of
operating results; competition in the electronic commerce and payment
processing markets; the issues associated with integration of the two
companies; the ability of the combined companies to successfully offer
expanded capabilities and services in the global online and payment
processing markets and the market's acceptance of such offerings, and
other risk factors referenced in the Company's public filings with the
Securities and Exchange Commission.
Digital River is a registered trademark of Digital River, Inc. All
other company and product names are trademarks, registrations or
copyrights of their respective owners.
