To support the continuing global roll out of its secure online payment technology, Orbiscom announced it has secured $17.5 million in private financing from HgCapital (formerly Mercury Private Equity) a leading provider of capital to the European private equity market.
The funding was arranged by Goodbody Corporate Finance. Orbiscom will use the funds to deliver on its growth plans to bring secure and authenticated online payments to consumers worldwide through partnerships with financial institutions and mobile providers, as well as supporting its strong Intellectual Property position.
Through its relationships with MBNA, Discover, First Data Corp., Allied Irish Banks, and other top five US and European issuers that Orbiscom has signed, Orbiscom’s technology will be available to more than 500 million cardholders worldwide. Orbiscom has also signed a fifteen-year cross-licensing agreement with Microsoft.
“Authenticating and securing online payments is the final piece of the jigsaw for e-commerce,” said Ian Armitage, Director of HgCapital. “Orbiscom’s Controlled Payment Technology has proven to be extremely effective in doing this and has the potential to become a gloabl standard. Two years of live transaction experience, its recent cross licensing agreement with Microsoft and strong client relationships in the US and Europe made Orbiscom a clear investment choice.”
US and European consumers who use the Orbiscom solution spend more online, become repeat purchasers and shop at a wider variety of online merchants than those who shop using their regular credit cards. Through its user friendly Controlled Payment Technology, Orbiscom has delivered to card issuers and increase of up to 60 percent in the average online transactions of its consumers with more than 62 percent of consumers who use the technology becoming repeat customers. Despite the downturn in the economic climate, users of Orbiscom’s safe payments have shown no decrease in their spending habits.
Financial institutions that select Orbiscom to provide their e-payments solution have the flexibility to select from industry standard security protocol initiatives, including those from Visa, MasterCard and Maestro with Orbiscom guaranteeing software compatibility. Because Orbiscom is compliant and complementary with all payment associations protocols, it offers a seamless user experience to card issuers, merchants and their consumers.
“This funding will allow us to continue our growth campaign while assuring our current clients and prospects that we have technical, Intellectual Property and financial strength to service major partners,” said Graham O’Donnell, Group CEO, Orbiscom, “Not only are we the leader in this space with the only live and proven implementations in the US and Europe, but we also have the resources to make solid progress towards profitability.”
Orbiscom is the creator of Controlled Payment Technology for online and real world card payment applications. Orbiscom’s flagship technology O-power(TM) enables card issuers, e-merchants, consumers and businesses to utilize online and wirelesss devices for controlled and secure debit and credit payments. Founded in early 1998 by professionals from the financial services, software and Internet industries. Orbiscom has operations in New York, Dublin, London, Brussels, Toronto and Sydney. The company has a highly experienced team of experts in software development, Internet banking systems, card processing systems and product marketing. Orbiscom has been granted patents on Controlled Payment Technology in the US, Europe and other countries worldwide. For more information about Orbiscom, go to: [www.orbiscom.com].
About HG Capital – [www.hgcapital.net]
HgCapital is a leading provider of private equity capital with offices in the UK and Germany. It has committed funds under management in excess of Euro 1 billion and specializes in the following industry sectors: Healthcare, business services, information & communications technology and media. It focuses on companies with enterprise values ranging from Euro 15 million to Euro 400 million, investing a minimum of Euro 5 million in any one transaction. It also transacts leveraged buy-outs in other sectors, in companies with minimum enterprise values of Euro 40 million.
HgCapital services over 200 pension fund clients and manages Mercury Grosvenor Trust plc, a quoted vehicle that invests in all of HgCapital’s deals.
Other recent examples of companies in which HgCapital has invested in the information & communciations technology sector include:
Trados Inc. – leading language translation software
Burns eCommerce Solutions – e-payment solutions
Comnitel Technologies – network management systems for wireless telecommunications companies
Acuid Corporation – intellectual property for high-speed data communications
In 1999 HgCapital supported the Pound 17 million buy-out of Checkpoint Holdings Limited, an e-payments solutions company, which was sold in 2001 to Bottomline Technologies, Inc. for Pound 53 million.
HgCapital is the trading name of Hg Investment Managers Limited and Hg Pooled Management Limited. Registered office 33 King William Street, London, EC4R 9 AS. Regulated by IMRO.