Lightbridge Inc. and Payment Services Interactive Gateway Corp., have jointly announced that they have entered into a non-binding letter of intent (LOI) whereby Lightbridge will acquire all of the outstanding shares of PSiGate of Mississauga, Ontario. Lightbridge and PSiGate also entered into an agreement providing for exclusivity until June 15, 2007.
The LOI provides that the acquisition will be an all cash transaction valued at approximately C$1.55 per share with maximum consideration of C$17.825 million. The LOI also provides that the acquisition is subject to customary closing terms and conditions. Total revenue for PSiGate was approximately C$4.2 million for its fiscal year ended December 31, 2006.
Bob Donahue, Lightbridge President and CEO stated, “We are pleased to have signed this letter of intent with PSiGate. Their secure transaction processing platform services the Canadian and US markets, and the acquisition is a major step towards our goal of expanding our payment processing capability outside the US. In addition, the PSiGate platform brings us one step closer to our strategic vision of offering one-stop shopping for our merchants by being able to support their Internet commerce needs in the US and Canada.”
Anthony Palumbo, President and CEO of PSiGate added, “We are looking forward to becoming part of Authorize.Net, one of the industry’s leading online payment processing services. The blending of the two companies is a natural and complementary fit, which we believe creates a strong single entity well positioned to meet the credit card processing needs for merchants across the US and Canadian markets.”
About Lightbridge and Authorize.Net
Lightbridge’s payment processing business, Authorize.Net provides secure, reliable, Internet Protocol (IP) based payment gateway solutions that enable merchants to authorize, settle and manage electronic transactions anytime, anywhere, via Web sites, at retail, mail order/telephone order (MOTO) call centers and on wireless devices. In addition to its payment solutions, Authorize.Net offers extensive value-add products and services designed to help merchants manage their business, fight fraud, and improve profitability. Authorize.Net is sold through an extensive network of distribution partners that offer its industry leading payment services to their merchant customers.
PSiGate empowers businesses on the Internet by providing secure, cost-effective and trusted e-commerce solutions. PSiGate provides an easy and seamless interface to new or existing online storefronts, offering a reliable means of both real-time and batch payment collection and financial transaction processing. PSiGate provides Internet Merchant Accounts (Merchant IDs) for North American based businesses. As at the date of this press release, the Company has 10,554,469 common shares outstanding.