Why did Avangate acquire 2Checkout?

Avangate acquired 2Checkout to expand payment flexibility and broaden market reach. In the eCommerce market, payment model flexibility was a desired attribute. The unified company will bring a unique combination of eCommerce and subscription management solutions to market through various payment models across the globe.

The driving force behind the combination was enabling our customers to sell products and services across the globe, both in-country and cross-border, in any manner they choose and with as much or as little of the platform as they desire.

Why did you sell 2Checkout?

We identified Avangate as being the perfect fit for what we envisioned for 2Checkout going forward. There is a great synergy between the 2 companies and this union will have a positive impact for us and our clients. It will improve our financial strength, scalability and market addressability. Our clients will not only benefit from an enhanced product with stronger ecommerce capabilities and increased market reach but also from increased innovation and operational efficiency due to the acquisition of additional talent with deep industry expertise in several functional areas.

What will this acquisition mean for us, your customers (short, medium and long term)?

In the short term, we are going to continue with the 2Checkout vision and roadmap, and so will Avangate. We will also start the integration between the 2 platforms and bring the best of both solutions to market in an integrated fashion.

Longer term, we will take the leading solutions we have and bring them to market as one cohesive solution that will be unparalleled in terms of being able to provide a comprehensive suite of ecommerce, subscription management and payment solutions with the most flexible options of picking and choosing the components used and the payment models offered.

It also means that 2Checkout will be able to support digital, subscription and physical goods and services in more than 200 countries and territories, for more than 250 merchant categories.

We anticipate being a leader in the subscription economy and extending our leadership in the ecommerce space in general. It means you will benefit from the best of breed eCommerce and Payment Services on the market.

Are we to expect any changes in pricing or your offering?

This acquisition does not impact pricing in any way.

Will the current leadership team and Advisory Board remain in place?

Alex Hart, Chief Executive Officer of Avangate, will head the new combined company. Ken Benvenuto, current Chief Executive Officer of 2Checkout, will continue to serve the company as a board member and advisor.

Avangate’s CFO, Gregor Morela, will be the CFO of the combined company. For all the other roles of the two companies, we do not anticipate significant changes and will be working on how we best integrate the teams in the next few months. The Avangate Advisory board will not change.

What does this acquisition mean for 2Checkout going forward?

This acquisition will have a positive impact for us and our clients, allowing us to get faster to where we want to be and offer you the solution and services you need. It will improve not only our capabilities, but also our financial strength, scalability and market addressability.

By coming together, we are positioned to lead the eCommerce and subscription management space, accelerate our payment offerings, and expand our footprint worldwide.

Can you please provide a profile of the company that acquired 2Checkout?

The company that acquired 2Checkout is Avangate, a Francisco Partners portfolio company, the digital commerce provider that helps Software, SaaS, and digital solution providers sell their products and services via multiple channels, acquire customers across multiple touch points, increase customer and revenue retention, leverage smarter payment options, and maximize sales conversion rates. Avangate’s clients include ABBYY, Absolute, Bitdefender, FICO, HP Software, Kaspersky Lab, and many more companies across the globe.

Avangate has 11 years in business, 200+ employees around the world and has over 1,000 SMB active clients (a total of 4,000) in the software and SaaS business. Moreover, Avangate has a Network of 50,000 affiliates focused on software & online services.

More information can be found on http://www.avangate.com.

Who is Francisco Partners?

Francisco Partners is a global private equity firm that specializes in investments in technology companies. Since its launch over a decade ago, FP has raised approximately $10 billion and invested in more than 100 technology companies, making it one of the most active investors in the industry. The firm invests in transaction values ranging from $50 million to over $2 billion, where the firm’s deep sub-sector knowledge and operational expertise can help a company realize its full potential. For further information, please visit: www.franciscopartners.com.

Are you changing the company name?

No, we will continue with the 2Checkout brand for the combined company. We think that the 2Checkout reflects what we do: Make it easy to sell products and services digitally all over the world.