Digital River buys online payments co LML for $97M

Digital River buying online payments processor LML for about $97.3 million

Associated Press

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.


View Comments (0)

Recommended for You