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Net Element, Inc. (NETE) Leveraging Pending Acquisition to Promote Sustainable Industry Growth
Net Element, Inc. (NASDAQ: NETE) recently demonstrated the immense market potential of its pending acquisition, PayOnline, when the company announced the signing of a three-year payment processing contract with the operator of a collection of international dating networks – including AnastasiaDate, AmoLatina and AsianDate. With the Kazakhstan launch of PayOnline still fresh on the minds of investors, this contract is expected to allow Net Element to add at least $1.2 million in net revenues to its financial results over the next three years.
The announcement of this added revenue came less than two months after Net Element executed definitive documentation to acquire PayOnline. Prior to the acquisition, PayOnline’s payment processing network included more than 10 million active customers, as well as thousands of merchants in the Russian Federation, Europe and Asia. Net Element’s ability to quickly and efficiently expand upon this market penetration is a promising sign for the company moving forward.
“This contract win demonstrates our ability to quickly derive value from strategic acquisitions and partnerships,” Oleg Firer, chief executive officer of Net Element, stated in a news release. “As we emerge from a period of financial and business restructuring, we plan to see more such value driving developments as we progress into our growth phase.”
In the first half of 2015, Net Element made significant strides toward improving its balance sheet in order to promote sustainable industry growth. In addition to securing financing of up to $24.5 million, the company created the operational infrastructure that will be required to accommodate future expansion efforts. In the coming months, Net Element will shift its focus toward fully integrating PayOnline’s value-added technologies into the company’s U.S. product offerings in an effort to become a premier payments-as-a-service company with a centralized, omni-channel, global platform.
Net Element’s recent financial progress should help the company capitalize on its considerable market growth. In the first quarter of 2015, the company provided a preview of its potential by recording a 15 percent year-over-year increase in gross revenues, and its efforts toward eliminating cumbersome debt from its balance sheet should place the company into a formidable position to realize continued financial improvement in the future. For prospective shareholders, Net Element’s recent business activities could provide an opportunity to realize improved returns moving forward.
For more information, visit www.netelement.com
