Neteller buys stake in Australian payments outfit Centricom

Source: Neteller

Neteller Plc (LSE: NLR), the independent global online payments business, announces that it has recently completed the acquisition of a strategic stake in Centricom Pty Limited ('Centricom').

The key points of the investment are:
  • Centricom operates the POLiTM payment platform in Australia and New Zealand.
  • NETELLER will pay a total of AUD$ 5 million (approximately US$ 4 million) for a significant equity position in Centricom.
  • Extends NETELLER's expertise as a payments hub for its merchants initially in the Asia Pacific region.

Centricom Pty Limited is an Australian company based in Melbourne that provides a range of web-based transaction services, including online payments, straight-through processing, reconciliation and advanced transaction integration solutions.

NETELLER has agreed to invest a sum of AUD $5 million in consideration of a minority stake holding in Centricom, on a fully diluted basis. As part of the investment, NETELLER will appoint one director to the Centricom board.

Through an existing partnership, NETELLER introduced the POLiTM service to its Australian customers in January 2007 as a safe and convenient method of payment direct from their bank accounts. The POLiTM system allows customers to make payments online, from their existing internet banking service, without disclosing their bank or credit card details to the merchant.

Centricom is backed by a strong financial partner in Melbourne-based Jagen group ('Jagen'). Jagen is an international investment group with interests across a broad range of industries in the United States, Europe and the Asia Pacific region. Jagen will continue to own the majority shareholding in Centricom following the NETELLER investment, along with Centricom's directors and employees.

This investment furthers the NETELLER Group's presence in the important and expanding Asia Pacific online payment market.

Ron Martin, President & Chief Executive Officer of NETELLER, said "We are pleased to cement our existing relationship with Centricom through this investment. We look forward to working with Centricom to ddrive the business through its next phase of growth. NETELLER will continue to seek out strategic relationships with companies such as Centricom who offer compelling products and services that enhance our innovative online payment solutions to our global customers and merchants."

Simon Warner, Managing Director of Centricom, said "We welcome the investment from NETELLER as a milestone in our development which will enable us to roll out the POLiTM service to more merchants and build further consumer brand awareness. This partnership is further evidence that Centricom is serious about being the major provider of online payments in Australia, New Zealand and beyond."

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