Payments platform Paysafe has agreed to divest its direct marketing payment processing business Paysafe Direct to KORT Payments.
KORT Payments is an omnichannel payments provider led by Paysafe’s founder and former CEO Joel Leonoff.
The transaction includes reseller and merchant contracts, dedicated technology, and employees associated with the business.
Paysafe Direct mainly comprises direct marketing and other card-not-present volume in both complex and conventional industry verticals.
The sale is structured with consideration largely consisting of annual earnout payments over the next five years.
Paysafe’s decision follows its strategic review aimed at reducing exposure to direct marketing within its Merchant Solutions segment.
Paysafe CEO Bruce Lowthers said: “The divestiture of our direct marketing payment processing business reflects our commitment to portfolio and resource optimisation to focus on our largest growth opportunities as a company.
“This accelerates our transformation by exiting a non-strategic business line, bringing a close to the repositioning of our Merchant Solutions segment.
“This represents a significant milestone that enhances long-term shareholder value by positioning Paysafe to deliver resilient growth and sharpen our focus on Paysafe’s ideal customers and verticals in the experience economy.”
Paysafe also released preliminary financial results for the fourth quarter (Q4) and full year 2024.
The company expects net income for 2024 to be between $19m and $25m, compared to a net loss of $20m in 2023. Full-year revenue is projected at $1.71bn, reflecting a 6% increase from the previous year, or 7% when excluding the disposed business.
For Q4 2024, net income is expected to range between $31m and $37m, compared to a net loss of $12m in the same period in 2023.
Quarterly revenue is estimated at $420m, representing a 1% increase year-on-year, or 4% when excluding the disposed business.
Subject to the finalisation of transition service-related items, the transaction is expected to be completed within 30 days.
