PushPay says streaming services are now an important aspect of the church’s engagement with its communities.
PushPay, a digital payment service for churches, is buying a streaming platform in the United States to accelerate its growth.
The company has agreed to pay 150 150 million (NZ $ 215m) in cash and shares to buy Race Media, it said in a statement to NZX on Monday. A loan of US 90 90 million will be taken to help fund the purchase.
PushPay counts more than half of the top 100 U.S. churches among its customers, and purchasing Recy will enable it to offer more services to new and existing customers. Reese uses more than 70% of the 100 largest American churches and is expanding its streaming service to corporate, education, sports and live event markets.
“Streaming services are now an important aspect of the church’s engagement with their communities, as they are increasingly focusing on building a digital presence,” PushPay said in a presentation note to investors.
“There are strong sales opportunities between both Recy and PushPay customers,” the company said.
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PushPay was founded in Auckland by Christians Chris Hasslep and Elliott Crother, who one day found it strange to have no money to donate to the church. It turned the corner in 2019, when it published its first profit, even though it continued to reinvest its cash for growth instead of paying dividends.
By the end of March, PushPay reported revenue of 31 31.2 million, up 95 percent year-over-year, as revenue rose 39 percent to 1 181.1 million. In contrast, Reese doubled its revenue from 8. 8.4 million to 17 17 million.
PushPay said the acquisition is not expected to materially contribute to profits in the current financial year, as Reese has increased the number of employees to help with future growth.
Reese is being sued in the United States for patent infringement, but Pushpay said patent litigation is not uncommon, with thousands of lawsuits filed in the United States each year.
PushPay said the claims are untrue and the sellers have agreed to compensate PushPay up to the full amount of the purchase price for any loss or damage related to the case.
Shares of PushPay rose 1.2 percent to 67 1.67 in mid-afternoon on the NZX.