OLB Group Signs Letter of Intent to Acquire Portfolio of CBD Merchants with Annual Transaction Volume Over $300M
27 Juli 2021 - 2:00PM
Business Wire
- 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
investorrelations@OLB.com.
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
InvestorRelations@olb.com (212) 278-0900 EXT: 333
Glenn Goldberg – Media Relations Parallel Communications, Inc.
ggoldberg@parallelpr.com (516) 705-6116
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