Gaming software provider and electronic payment processor IQ-Ludorum
(IQL) has acquired First Pay, an online debit card solution specialist
in an all-shares deal.
On 13 April the share price was 7.5p, valuing the First Pay deal at around £3m (US$5.3m).
This
is significant for IQL as First Pay has a long-standing arrangement
with Antigua-based operator World Sports Exchange (WSEX.)
The
deal, alongside the sale of IQL’s sportsbook to Betcorp, represents a
diversification in IQL’s traditional profile, away from revenue-based
on software sales, to one with a dual focus with payment services.
Mike
Muscato, chairman of IQL, said: “The developments today reflect a
fundamental shift in IQL’s business model towards recurring revenue and
sales linked to the dollar volume of transactions. Gaming is expected
to continue a double-digit, multi-billion dollar year-over-year growth
and IQL is now poised to maximise its participation in this growth.”
Antigua-based
gaming operator WSEX, part of the NetBet group of companies, will
deliver US$250m in payment processing volume to First Pay over three
years under the terms of the deal.
IQL is now aiming some products and services at individual consumers and, through First Pay, will profit from debt card fees.
Sean
Forward, founder of WSEX, has relocated to Antigua from the UK to take
up an executive role at IQL, and will be responsible for the First Pay
launch.
IQL has also announced a deal for its IQ-Softech sportsbook to Betcorp.
The
deal with Betcorp sees IQL providing software solutions for the routine
management of a call centre and online sportsbook. Betcorp have been
using IQ- Softech for five years, something which is predicted to
continue.
There is also a planned payment-solutions deal between the two companies.
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