Paysafe Ltd, the Bermudian-incorporated specialised payments platform, has agreed to sell its direct marketing payment processing business line.

The company has entered into a definitive agreement to sell substantially all assets related to its direct marketing payment processing business line, Paysafe Direct LLC, to KORT Payments, a specialised omni-channel payments provider, led by Joel Leonoff, founder and former chief executive of Paysafe.

The business primarily consists of direct marketing and other card-not-present volume in both complex and traditional industry verticals.

The transaction includes reseller and merchant contracts, as well as dedicated technology and employees related to the business.

The consideration for this transaction largely consists of annual earn out payments over the next five years.

The deal is expected to close in 30 days subject to finalising certain transition services-related items, the company said.

Bruce Lowthers, chief executive of Paysafe, said: “The divestiture of our direct marketing payment processing business reflects our commitment to portfolio and resource optimisation to focus on our largest growth opportunities as a company.

“This accelerates our transformation by exiting a non-strategic business line, bringing a close to the repositioning of our merchant solutions segment.

“This represents a significant milestone that enhances long-term shareholder value by positioning Paysafe to deliver resilient growth and sharpen our focus on Paysafe’s ideal customers and verticals in the experience economy.”

John Crawford, chief financial officer of Paysafe, said: “This is a meaningful step forward to improve our financial performance by eliminating a declining, noncore revenue stream while significantly reducing Paysafe’s exposure to higher risk verticals.

“It’s important to highlight that the core businesses performed in line with our expectations for 2024, including 10 per cent revenue growth from our merchant solutions segment, excluding the disposed business, and 4 per cent revenue growth from our digital wallets segment.”

Subject to the finalisation of financial reporting processes, including the finalisation of its review of income taxes, the company said net income for 2024 is expected to be between $19 million and $25 million, compared with a net loss of $20 million in 2023.

Paysafe said it intends to provide its full financial results and a more detailed update on March 4.