Financial processing company EFT Canada is ready to close its acquisition of a privately held U.S. credit consulting firm that has technical software and provides customers with an online point-of-sale user interface.
Linterna Technologies Ltd. will sell its technological assets to EFT for $650,000 by way of $325,000 in cash, according to VRL-Financial-News.com.
EFT Canada will pay $125,000 on the closing date, which is August 19, and then $325,000 will be payable in common shares of EFT Canada.
The remaining $200,000 will be a cash payment due on the twelfth month following the closing date, subject to delay and reduction if operating targets are met, according to VRL-Financial-News.com.
On top of the purchase price, Linterna will be paid $0.05 per credit card transaction processed for a period of three years by EFT, according to Cards.Banking-Business-Review.com.
In addition to the web-based point-of-sale interface that allows merchants to accept server-to-server credit card transactions, Linterna Technologies offers mobile e-wallet options.
"The technology being acquired from Linterna, represents an important part of EFT's vision to place under one umbrella organization all services needed by our merchants to process electronic payments,” Jonathan Pasternak, president of EFT Canada said, according to VRL-Financial-News.com.
The acquisition still needs the completion and signing of a definitive agreement and approval by the TSX Venture Exchange.