The OLB Group, Inc. completed the acquisition of Portfolio of CBD and other Merchants from FFS Data Corporation.
November 23, 2021
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The OLB Group, Inc. (NasdaqCM:OLB) signed a non-binding letter of intent to acquire Portfolio of CBD and other Merchants from FFS Data Corporation for $18 million on July 1, 2021. The consideration consists of $16 million being paid at closing and $2 million of earnout payment payable subject to an adjustment based on the revenue and residuals generated by the Purchased Assets. The Escrowed Funds will be adjusted whereby, if there is an average revenue shortfall percentage of 20% or less, then the full amount of the Escrowed Funds shall be released to Seller one year from the closing date of November 24, 2021. If the average revenue shortfall is more than 20%, then the Escrowed Funds will be released to Seller in pro rata amounts using the percentage basis of the funds that is more than 20%. In addition to the Purchased Assets, The OLB Group purchased customer lists, intellectual property and net revenue, residuals, rebates, or credits relating to the Portfolio of CBD and other Merchants accruing from October 1, 2021. The group of merchants to be acquired have reported annual transaction volume of approximately greater than $300 million. The transaction is expected to close in the fourth quarter of 2021 however there can be no assurance that the company will close this acquisition.
The OLB Group, Inc. (NasdaqCM:OLB) completed the acquisition of Portfolio of CBD and other Merchants from FFS Data Corporation on November 24, 2021.
The OLB Group, Inc. is a diversified Fintech eCommerce merchant services provider. Its eCommerce platform delivers cloud-based merchant services for a digital commerce solution to thousands of merchants in all 50 states. It seeks to provide merchants with a range of products and services through its various online platforms, including financial and transaction processing services. Its business functions through three subsidiaries: eVance, Inc. (eVance), OmniSoft.io, Inc. (OmniSoft), and CrowdPay.Us, Inc. (CrowdPay). OmniSoft operates a cloud-based business management platform that provides turnkey solutions for merchants to enable them to build and manage their retail businesses. eVance provides competitive payment processing solutions to merchants, which enable merchants to process credit and debit card-based Internet payments for sales of their products. CrowdPay operates a white label capital raising platform that targets small and midsized businesses seeking to raise capital.