Global online payment service provider PayU acquired payments technology player, Citrus Pay, for $130 million in an all-cash deal, a joint statement said on Wednesday.
The agreement is due to close in the third quarter of 2016. The statement described PayU's $130 million transaction as the largest ever merger and acquisition cash deal in the Indian fintech sector.
"Today's announcement is a significant milestone for both businesses, as well as the fintech industry in India. It is exciting for everyone across the PayU and Citrus teams as we bring together new capabilities that will help us to better serve our collective clients." said Laurent le Moal, CEO of PayU.
The deal will grow PayU India customers to more than 30 million, processing a forecasted 150 million transactions in 2016 worth a combined $4.2 billion, growing at more than 50 per cent year-on-year, the statement said.
"The agreement also enables PayU to quickly bring additional innovative financial services to market for its business and consumer customers," it added.
Amrish Rau, currently Citrus Pay managing director, will become CEO of PayU in India. Reporting to PayU Global CEO, Laurent le Moal, he will lead entrepreneurial management team across PayU and Citrus Pay.
Citrus Pay founder Jitendra Gupta will drive PayU's Fintech foray into credit through Citrus Pay's Lazypay, while Shailaz Nag, PayU co-founder, will focus on new areas of growth through bank alliances.
Nitin Gupta, PayU co-founder, will help complete the transition to the new leadership team before departing PayU to pursue his entrepreneurial ambitions.
Citrus Pay was founded in 2011 by Jitendra Gupta.
PayU is part of Naspers, a global Internet and entertainment group, and one of the largest technology investors in the world.
Investec acted as the sole advisor to the transaction.