- Portfolio includes over 1,200 successful merchants, which will provide OLB with a solid foothold in a rapidly growing marketplace
- Following closing, OLB acquisition is expected to add $13M in annual revenue, increasing revenue 118%
- Following closing, acquisition is projected to add an additional $3.6M EBITDA
The OLB Group, Inc. (NASDAQ: OLB), a provider of cloud-based omnicommerce and payment acceptance solutions for small- and mid-sized merchants, announced it has signed a non-binding letter of intent (LOI) to acquire a portfolio of CBD and other merchants that will utilize the company’s SecurePay Payment Gateway to process payments. The group of merchants to be acquired have reported annual transaction volume of greater than $300 million. The transaction is anticipated to add an accomplished and experienced sales channel to the OLB team, enabling further penetration into one of the fastest growing sectors in the United States. OLB anticipates an additional $13 million in revenue and $3.6 Million EBITDA from the transaction, nearly doubling its current revenue to over $25 million. The company also plans to use the deal as a foundation to expand SecurePay services and its eCommerce business activities. The terms of the agreement were not disclosed.
“OLB is delighted to enter into this letter of intent to secure this group of successful merchants. Once closed, the acquisition gives us a strong position in a marketplace that continues to demonstrate robust growth and profitability,” said Ronny Yakov, Chief Executive Officer of The OLB Group. “The SecurePay platform provides compliant payment processing services that extend beyond traditional card payments, offering flexible choices that will appeal to merchants and their customers in a single and secure ecosystem. We believe the OLB platform is perfectly suited to address the lucrative CBD market.”
A recent market analysis by Grandview Research indicates the burgeoning CBD market was valued at $2.8B in 2020 and is expected to expand at a growth rate of 21.2% through 2028. OLB’s acquisition positions the company to capitalize on the projected growth of the CBD market, while SecurePay will address many of the payment concerns the rapidly expanding CBD market currently experiences.
SecurePay provides integrated support for traditional card-based payments, as well as major digital wallets including Apple Pay® and Google Pay®, cryptocurrency wallets, and PayPal. The cloud-based platform also includes integrations with multiple back-office systems including QuickBooks and other business software applications.
For merchants looking to simplify business processes and payment acceptance at the point of sale (PoS,) OLB’s OmniSoft Business Management Platform offers merchants extended services including PoS terminals, warehouse, inventory, and logistics support, accounting and payroll, and customer relationship management.
Merchants interested in implementing omnicommerce services can set up a SecurePay or OmniSoft account at https://cardaccept.com/#contact .
For more information about The OLB Group, please visit www.olb.com or www.olb.com/investors-data .
Future OLB Press Releases and Updates
Interested investors or shareholders can be notified of future Press Releases and Industry Updates by e-mailing [email protected] .
About The OLB Group, Inc.
The OLB Group, Inc. is a payment facilitator and commerce service provider that delivers cloud-based merchant services for web-based and brick-and-mortar organizations. OLB provides a seamless, end-to-end digital commerce solution that includes site creation, hosting, transaction processing and payment gateway, order fulfillment, customer service, outbound marketing, sales reporting, and fundraising. With services from private label shopping sites designed to maintain the unique look or feel of the merchant website, to order fulfillment and customer service, OLB remains invisible to the user and promotes the merchant’s brand with market-leading technology and solutions. For more information about solutions, services, or to find a reseller, please visit www.olb.com . Investor information is available at www.olb.com/investors-data .
Safe Harbor Statement
All statements from The OLB Group, Inc. in this news release that are not based on historical fact are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and the provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements include, but are not limited to, statements concerning the impact of COVID-19 on our operations and financial condition, our ability to enter into a definitive agreement and consummate the proposed acquisition of the merchants, the continuing growth of the CBD sector generally, the continued sales and revenues of the merchants that are being acquired, our ability to generate revenues and profits from the new merchants, that the agreement, if entered into, will result in additional business for our Omni Commerce and SecurePay applications. While the Company’s management has based any forward-looking statements contained herein on its current expectations, the information on which such expectations were based may change. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of risks, uncertainties, and other factors, many of which are outside of our control, that could cause actual results to materially differ from such statements. Such risks, uncertainties, and other factors include statements regarding the expected revenue and income for operations to be generated by The OLB Group, Inc. For other factors that may cause our actual results to differ from those that are expected, see the information under the caption “Risk Factors” in the Company’s most recent Form 10-K and 10-Q filings, and amendments thereto, as well as other public filings with the SEC since such date. The Company operates in a rapidly changing and competitive environment, and new risks may arise. Accordingly, investors should not place any reliance on forward-looking statements as a prediction of actual results. The Company disclaims any intention to, and undertakes no obligation to, update or revise any forward-looking statement.
View source version on businesswire.com: https://www.businesswire.com/news/home/20210727005334/en/
The OLB Group – Investor Relations
Rick Lutz
[email protected]
(212) 278-0900 EXT: 333
Glenn Goldberg – Media Relations
Parallel Communications, Inc.
[email protected]
(516) 705-6116