Business
OLB Group Acquires CBD Merchant Portfolio with Annual Transaction Volume Over $400 Million
Portfolio includes over 1,500 merchants, which will provide OLB with a strong position in a rapidly growing marketplace Acquisition includes new sales
About this update from The Olb Group, Inc.
[{"type":"text","content":"\n\nPortfolio includes over 1,500 merchants, which will provide OLB with a strong position in a rapidly growing marketplace\n\n\nAcquisition includes new sales channel currently onboarding an average of 120 new accounts a month\n\n\nBased on historical performance, deal expected to add approximately $20 million in annual payment processing revenue, increasing total revenue 200%, with an additional $5 million EBITDA projected\n\n\n NEW YORK--(BUSINESS WIRE)--\nThe OLB Group, Inc. (NASDAQ: OLB), a diversified fintech merchant services provider and Bitcoin mining enterprise, today announced it has entered into a definitive agreement to acquire a portfolio of cannabidiol (CBD) merchants that will utilize the company’s SecurePay Payment Gateway to process payments. The acquired merchant portfolio has demonstrated a historical annual transaction run rate where it is anticipated to achieve an annual transaction volume of approximately $400 million in 2022, providing OLB with a significant foothold in the nearly $3 billion global CBD market while adding an accomplished and experienced sales channel to the OLB team. The OLB Group anticipates, based on the historical performance of the group of merchants, an additional $20 million in annual revenue and $5 million in earnings before interest, taxes, depreciation, and amortization (EBITDA) for the company's payment processing business. Terms of the transaction can be found in the Company’s SEC filing https://www.sec.gov/ix?doc=/Archives/edgar/data/0001314196/000121390021062606/ea151441-8k_theolbgroup.htm.\n\n“OLB is very pleased to have successfully closed this transaction resulting in this substantial addition to our payment processing business in a market sector that has been growing rapidly over the past several years. This portfolio acquisition of successful merchants in a market that is forecasted to continue its very healthy growth rate in both profitability and revenue provides OLB with a new growth engine,” said Ronny Yakov, Chief Executive Officer of The OLB Group. \"The revenue contribution to our top line is anticipated to represent an increase of revenue of approximately 200% percent in 2022 when compared to 2020 revenue.\"\n\nAccording to a recent market analysis by Grandview Research, the flourishing CBD market was valued at approximately $2.8B in 2020 and is projected to incr...