Planet Payment agrees to be bought by Fintrax Group
Long Beach-based Planet Payment, seen Friday, Oct. 27, 2017, is being acquired by Fintrax Group in a deal that is expected to close by year's end. Credit: Newsday / Alejandra Villa
Shares of Planet Payment Inc. climbed 17 percent Friday after the Long Beach-based processor of credit card transactions announced that it had agreed to be acquired by Fintrax Group, based in Galway, Ireland.
In a joint news release after Thursday’s market close, the companies said that Planet Payment’s board of directors has unanimously approved the acquisition for $4.50 per share in cash, which would be subject to approval by the company’s shareholders. The deal is expected to close by year’s end.
The transaction would be the latest to remove a Long Island company from the public markets. Prominent publicly traded companies that have been acquired in recent years include Pall Corp., bought by Danaher Corp. in 2015, and Globecomm Systems Inc., bought by Wasserstein & Co. in 2013.
Fintrax, with more than 800 employees, provides payment processing for tourists and merchants.
Planet Payment reported having 163 full-time employees, including 70 outside the United States, on Dec. 31.
A call seeking comment from Planet Payment chief financial officer Raymond D’Aponte was not returned.
Carl Williams, chairman and chief executive of Planet Payment, said in a statement that the company is “excited to be joining the Fintrax organization.”
Fintrax CEO Patrick Waldron said the acquisition will expand the company’s reach, “particularly in the U.S., Canada, the Middle East, Latin America, China and Southeast Asia.”
Shares of Planet Payment, which processes payments in multiple currencies across 23 countries and territories, gained 65 cents to close Friday at $4.47. The stock has risen 36.3 percent in the past 12 months.
Ken Schachter covers corporate news, including technology and aerospace, and other business topics for Newsday. He has also worked at The Miami Herald and The Jerusalem Post.
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