Network365 merges with iPin

TECHNOLOGY firm Network365 has merged with an American company and rebranded itself as global payments firm, Valista.

Wicklow-based Network365 said yesterday that it had agreed merger terms with US firm iPIN, which develops software for payments over mobile devices. The terms of the merger were not disclosed by either side.

However, Network365 chief executive Raomal Perera said the combined firm would be profitable next year and that revenues would now double.

Network365 raised €12 million in funding from investors earlier in the year to fund its expansion and Mr Perara said it was always the company’s intention to look for a partner.

“We always said in order to grow it is critical to look at mergers and acquisitions and this is as planned. And we have been looking at companies and it [iPIN] seemed a good fit. When you look at their customer base, primarily in the US, France and the UK and our strength has been in Asia, you see it is a very good fit for us.”

When the merger is completed, Mr Perera will become chief executive of Valista, while Alexandre Gonthier, iPIN’s chief, will become chief strategy officer. Andy DeMari, chairman of Network365, will become chairman of the new company.

The board of the new company will contain representatives from both firms venture capital investors, which include Amadeus Capital Partners and Advent Venture Partners, Trinity Venture Capital in Ireland and Sutter Hill Ventures.

Mr Perara said that some jobs will go as a result of the merger, but the impact would be “minimal.” The firm will have its European base in Wicklow, where Network365 employs over 60 people and its global head office in America.

Mr Gonthier said: “The merger of the two companies would create “what we believe will be the leading global provider of electronic and mobile payments technology.”

Industry analysts have reacted positively to the merger, viewing it as a significant event which will enable the growth of payments technology and the evolution of standards.