The move will transfer merchant contracts, technology, and employees to KORT Payments, a company led by Paysafe’s former CEO Joel Leonoff. Credit: Freedomz/ Shutterstock.

UK-based payments platform Paysafe has agreed to sell the assets of its direct marketing payment processing unit, Paysafe Direct to omnichannel payments provider, KORT Payments. 

Financial terms of the deal, expected to close within 30 days, were not revealed. 

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This move will mark KORT’s expansion into the US. It will transfer existing reseller and merchant contracts, technology, and employees to KORT Payments, a company led by Paysafe’s former CEO Joel Leonoff. 

The transaction will primarily involve annual earnout payments over the next five years.  

Paysafe decided to sell the direct marketing business after reviewing various options and conceding that a quick exit would be beneficial for long-term shareholder value.  

Paysafe CEO Bruce Lowthers said: “The divestiture of our direct marketing payment processing business reflects our commitment to portfolio and resource optimisation to focus on our largest growth opportunities as a company.  

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“This accelerates our transformation by exiting a non-strategic business line, bringing a close to the repositioning of our Merchant Solutions segment.”  

KORT Payments chairman Joel Leonoff stated: “The acquisition of Paysafe’s direct marketing payment processing business represents a quantum leap for the company and aligns with our commitment to providing innovative solutions across North America. The KORT team has extensive experience in managing complex industry verticals and has proven success in this sector.”  

Last month, Paysafe obtained a payment institution licence from the Central Bank of Brazil, enabling its foray into the Brazilian iGaming and online sports-betting market.