Provider of secure payment and customer contact solutions, Eckoh has announced that it has entered an agreement to acquire competing payment provider Syntech for a total consideration of £31.0 million through a combination of cash (£24.7 million) and new Eckoh shares (£6.3 million). In addition to the acquisition, Eckoh has announced a £10 million debt facility via Barclays.
Founded in 1998, Syntec operates in the UK, US, EU, and Australia, and provides payment solutions under the brand CardEasy to over 100 clients including Wayfair, Miele, Staples, AIB, and Hiscox, accounting for 85% of the company’s revenues. Syntec also offers telecom and contact centre services, predominantly based in the UK, and holds 11 patents, which will now transfer to Eckoh, bringing the laters’ total to 17.
One year Syntec’s senior, Eckoh offers many complimentary services, and according to a statement released by the company, “... the acquisition will enable Eckoh to further capitalise on the structural trends that are shaping a significant growth market in Customer Engagement security. The combined capabilities and complementary operations of the two companies will ensure Eckoh is strongly positioned to provide multiple solutions to clients that are facing challenges including evolving regulatory pressures, the growing risk of data breaches and fraud, and the widespread migration to a greater level of remote working following the impact of the COVID-19 pandemic.”
According to Eckoh representatives, effective immediately, management teams will embark on a mission to, “identify, agree and implement central function cost savings, assess office requirements and start to evaluate the combined product offering to determine what rationalisation or adaptation is required.” While that doesn’t exactly say that some jobs are at risk, it also does not not say that some jobs are at risk.
The acquisition is expected to close on the 22nd of December.