April 4 (SeeNews) - Romanian-born e-commerce company Avangate said on Monday it has acquired US-based global payment processor 2Checkout for an undisclosed sum.
Upon the transaction's completion, the new company will serve more than 8,000 active merchants worldwide, Avangate said in a press release.
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Avangate was founded in 2006 in Romania and was bought seven years later by US equity firm Francisco Partners.
The combined corporation will use the 2Checkout name and will be led by Avangate's CEO Alex Hart. Ken Benvenuto, the current CEO of 2Checkout, will continue to serve the company as a Board member and advisor.
"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," Alex Hart said.
He added that the Avangate's main reason to acquire 2Checkout was to gain the ability to sell products and services all over the world, both in-country and cross-border, and to use as much or as little of the platform as the client desires.
"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," Ken Benvenuto said.
The new company will have the ability to conduct business and settle transactions in more than 30 languages and 130 local currencies, Avangate said. Moreover, it will provide support for both digital and physical goods and services in more than 250 merchant categories in 200 countries and territories worldwide.
2Checkout is a portfolio company of Chicago Growth Partners and Trident Capital and aglobal payment processor that allows companies to accept online and mobile payments from buyers worldwide with localized payment options. .
In business since 2000, 2Checkout supports transactions in more than 200 markets through 8 payment methods, 87 currencies, and 15 languages, and is trusted by thousands of merchants worldwide.
Avangate is a digital commerce provider that helps software, software as a service and digital solution providers to sell their products and services via multiple channels, to acquire customers across multiple touch points, to increase customer and revenue retention, to leverage payment options, and to maximize sales conversion rates. It was founded in 2006 by Romanian entrepreneur Radu Georgescu as part of Gecad Group. It has an office in northern Bucharest where it employs some 250 people.
In 2013, Avangate was bought by American private equity firm Francisco Partners. Its clients include ABBYY, Absolute, Bitdefender, FICO, HP Software, Kaspersky Lab and many more companies across the globe.