YNOT – Barcelona-based internet payment services provider CommerceGate has severed all ties with SegPay, an IPSP headquartered in Florida. The companies formed a business alliance in 2008, allowing SegPay to benefit from CommerceGate’s presence in Europe while CommerceGate increased its presence in the U.S. through SegPay’s established U.S. base.
The rift between the business partners came as a result of what CommerceGate calls breach of contract but SegPay says is a simple business dispute arising out of two CommerceGate-related companies’ failure to complete a buyout agreement.
The related companies are Emanon Management Services Inc., a Florida corporation owned in part by CommerceGate Chief Executive Officer Bjorn Skarlen, and Mannejor Holding Limited, based in Cyprus. In documents filed with the Circuit Court for the 17th Judicial District (Broward County, Fla.) on Oct. 4, Emanon and Mannejor allege SegPay parent company Toccata Inc. is in default on the $897,345 balance of a $1 million loan note held by Mannejor, plus management fees due Emanon.
Toccata maintains it owes Emanon and Mannejor a total of $220,684, which it has placed in escrow with its attorney, pending outcome of a dispute ongoing since July with the other two companies.
“As a direct consequence of this lawsuit and effective immediately, Emanon is no longer providing management services to SegPay,” Skarlen said Tuesday.
And neither is CommerceGate.
On Wednesday, SegPay President and CEO Cathy Beardsley told YNOT her company vehemently disputes the allegations in the lawsuit.
“We are disappointed that Emanon — CommerceGate — has chosen to initiate litigation against SegPay and believe the lawsuit is without merit,” she said. “We will vigorously defend our position.”
According to Beardsley, Emanon, Mannejor and SegPay in 2008 executed a purchase-option agreement under which the former two companies would acquire SegPay on or before June 30, 2011.
“SegPay was assured by Emanon that it had the financial resources to exercise its option and purchase the outstanding shares of SegPay by the deadline,” Beardsley wrote in a statement. “When Emanon did not have the financial resources to complete the transaction on the agreed date, SegPay decided it was in the company’s and its clients’ best interest to terminate the relationship with Emanon in July. What remains is a simple business dispute that does not affect SegPay or its clients going forward.
“SegPay is a strong, growing company, focused on serving our clients,” she added. “Our management team, IT infrastructure and support staff is in place, and our banking and card association relationships will not be disrupted. It’s business as usual — only now, the SegPay way.”
