- Red Dot Payment bought by Netherlands-based PayU, which has operations across the world
- New agreement means that Red Dot Payment’s current shareholders will exit the firm, except for founder
- "As part of our business strategy, PayU will collaborate with the promising founders who are driven by an entrepreneurial passion”, says PayU
An Asian cross-border payments provider has been acquired by PayU, a leading financial technology business based in the Netherlands.
Red Dot Payment, which covers the whole of South East Asia, will now be owned by PayU. Red Dot Payment was first set up back in 2011 and is the brainchild of former leaders of various Fortune 500 firms.
It is a commercial provider and offers a range of enterprise-level solutions to businesses. It works in a range of different sectors, including e-commerce, not for profits and others.
Now, the new acquisition will mean that those who sell products using PayU will be able to sell in Southeast Asia with just one simple application programming interface (API) system.
As a result of the agreement, PayU will now hold a majority share in Red Dot Payment.
Overall, Red Dot Payment will now be valued at $65 million for the purposes of the transaction. Its founder, Randy Tan, will keep a share of the firm, however, most other shareholders will now leave.
The CEO of PayU, Laurent le Moal, said that he intended for the firm to look at expanding its presence in the region even further.
"This investment is PayU's first step towards expansion in the SEA region. We will now provide our existing global merchants access to Southeast Asia with a single API integration, thus strengthening our global PayU Hub platform”, he said.
"Owing to the immense potential that the SEA market presents, PayU sees a vast opportunity in this region to grow and innovate further. We will continue to look for prospects to reinforce our footprints in this market."
"As part of our business strategy, PayU will collaborate with the promising founders who are driven by an entrepreneurial passion. We're excited to welcome Randy and the team to PayU as we continue to pursue our vision of creating a world without financial borders", he added.
For Red Dot Payment, CEO and founder Randy Tan said that his firm was “proud” of its achievements so far – and that PayU had recognised this.
"We are proud of how far we have come and that PayU, a leading global fintech operator and investor, recognises the strength, depth, and breadth of the company that we have built with unwavering dedication over the past eight years”, he said.
According to media reports, this acquisition will move the full amount spent on mergers and acquisitions in this space to just over $700 million since 2016.
To discover more about the firms which are merging and acquiring in the dynamic international money transfers industry, head over to this section of our site.
