Freelancer just raised $10 million and bought an escrow company to launch into payments

Freelancer CEO Matt Barrie. Image: Supplied.

Crowdsourcing marketplace Freelancer has just completed a $10 million raising through a share placement deal to fund its acquisition of for $US7.5 million.

The company has entered into a definitive agreement to acquire the Californian-based site, which provides online escrow services including transaction management, from a private investor. Last financial year had a gross payment volume of $US265 million, net revenue of $US5 million and posted an EBITDA of $US1.2 million.

As for what Freelancer will do with the company, CEO Matt Barrie said: ‚ÄúThis highly complementary acquisition will enhance the ability of our 15 million users to transact securely, and there are large opportunities for growth and synergies with core offerings. Finally, it is a strong cornerstone for entering the payments space.”

Acting as a third party which collects, holds and disburses funds according to buyer and seller instructions, partners include eBay, GoDaddy and Freelancer will continue to run as a stand alone business.

Freelancer raised $AU10 million through a placement of ordinary shares to institutional investors to fund the acquisition. Issuing 10 million ordinary shares at $AU1, UBS AG was the bookrunner on the deal.

A short time ago Freelancer’s share price was up more than 5.5% to $AU1.05.

The acquisition of is subject to regulatory approval. Settlement of the placement is due to take place on Thursday.

The group staff will be continuing with the California-based business.

Over the past 12 months Freelancer has executed on an acquisition buying spree to build out its community.

Last year it bought out online marketplace Warrior Forum, virtual content marketing community and Polish online services site It also launched a domain exchange website called Freemarket and this year added Israeli site DoNanza.

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