Rocket Internet-backed online payment technology provider Paymill has been bought by Klik & Pay for an undisclosed amount, three months after it filed for insolvency.
Online payment services provider Klik & Pay has acquired Germany-based payment technology producer Paymill for an undisclosed sum, giving an exit to e-commerce holding company Rocket Internet, TechCrunch reported yesterday.
Paymill, which was incubated, seeded and launched by Rocket Internet in 2012, has built an online gateway that can be used by online merchants to manage credit card payments securely.
The technology can be integrated into a user’s website or mobile app, and is available in 34 European countries.
The company had raised $18m in funding, securing $13m in January 2013 from Holtzbrinck Ventures, the venture capital firm spun out from publishing company Georg von Holtzbrinck Publishing Group, and Sunstone Capital, before adding $5m from Blumberg Capital the following month.
However, Paymill filed for insolvency in April this year after finding it difficult to compete with more heavily funded competitors like Stripe. The acquisition comes as Rocket Internet is looking to consolidate its businesses.
Mark Henkel, who will remain CEO of Paymill once the deal is closed, said in a statement: “We had some interested parties and offers following the announcement of the petition for insolvency.
“We therefore spoke to several possible cooperation partners, as we felt it was important that the deal would not only be the right one on paper, but also offer the best possible future for Paymill. We have a brilliant strategic fit with Klik & Pay and our vision and objectives are perfectly aligned, so we are very much looking forward to working together in the future.”
