KORT Payments acquires Paysafe Direct LLC in strategic move

KORT Payments acquires Paysafe’s direct marketing payment processing business, Paysafe Direct LLC, as part of an aggressive growth strategy.

Paysafe Direct LLC specializes in processing payments for direct marketing companies, managing high-volume, card-not-present transactions such as subscriptions, online purchases, and recurring billing.

The acquisition includes the business’s reseller and merchant contracts, its dedicated technology, and team. The deal is structured with earnout payments to be made annually over the next five years, with completion expected next month, contingent on final transition services.

Paysafe’s CEO, Bruce Lowthers, explained that the sale of this non-strategic business line is part of a broader effort to optimize the company’s portfolio and focus on larger growth opportunities. CFO John Crawford also noted that the divestiture helps improve financial performance by removing a declining revenue stream and reducing exposure to high-risk sectors.

This deal comes shortly after reports suggested that Paysafe is considering the sale of its business, with an 80% drop in its company valuation, now at approximately $1.4 billion.

For KORT Payments, led by former Paysafe CEO Joel Leonoff, this acquisition is a key move in expanding the company’s footprint across North America. Leonoff’s leadership, along with a newly appointed management team, follows KORT’s rebranding from Merr.