Paysafe (NYSE:PSFE), announced last week the definitive agreement to sell their direct marketing payment business to KORT payments. The former CEO of Paysafe, Joel Leonoff, is leading the buyout which is expected to close in thirty or so days, financial terms were not disclosed. This soon to be sold segment of its merchant portfolio consists of ‘high risk’ card-not-present transactions, thus the deal can be seen as de-risking the company’s business. Management indicated the direct marketing payment services generates about 15% of the merchant solutions revenue, implying a $140 million annual run rate. Proceeds will help strengthen Paysafe’s capital structure, which carried $2.2 billion in net debt for a 4.7 net debt to Adjusted EBITDA leverage ratio as of the last quarter. A new CFO was recently hired, and the Board of Directors authorized a $70 million increase in the share repurchase program, bringing the total to $77 million. Changes are afoot at this marquee international payments company, and we are excited about their prospects.
Paysafe Simplifies International Payments
Paysafe is a leading global payment provider that connects users worldwide through payment processing, digital wallets, and online cash solutions. One of the key features of Paysafe is its Payments API, which allows businesses to integrate with 100 global payment methods, including cards, digital wallets and bank transfers. This single point of integration simplifies the transaction process, reduces operational complexity, and ensures a secure and user-friendly experience. Consumers may utilize Paysafe through a myPaysafe mobile app which serves the under-banked and banked alike.
The company has a storied history navigating several cycles of going public and private with the most recent ‘coming out party’ in 2020 through a special purpose acquisition company (SPAC). For context, excluding the pending transaction, the company should process about $150 billion in gross payment volume generating $1.7 billion and $470 billion in adjusted EBITDA in 2024 (Q4 reported March 4, 2025).
