MINNEAPOLIS (AP) -- Digital River is buying LML Payment Systems Inc. for about $97.3 million, which will help expand its online payment processing services to small businesses.
LML is a Canadian company that processes online payments for more than 14,000 small and mid-sized merchants. Digital River, which is based in Minneapolis, has previously focused on bigger companies.
Digital River Inc. said Monday that it will pay $3.45 for each LML share, which is an 85 percent premium to the company's Friday closing price of $1.87. The companies put the total value of the deal at about $102.8 million.
LML currently has approximately 28.2 million outstanding shares, according to FactSet.
Shares of LML jumped $1.53, or 82 percent, to $3.40, while Digital River's stock added 3 cents to $16.83 in morning trading.
Both companies' boards have approved the acquisition, and they expect the deal to close in the fourth quarter or the first three months of the year. Two-thirds of LML's voting shareholders need to approve it.
Digital River expects that buying LML will add to its profit in the year ending in March.