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MGI 360 Ratings - 2Checkout in Commerce and Payment Platforms JUNE 18 2019

MGI360 LogoRATING UPDATE: We are raising the MGI 360 Rating of 2Checkout (fka Avangate) in the Commerce and Payment Platforms space from 46 to 51 and maintain a Neutral outlook.
OPINION: Following the merger of Avangate and 2Checkout, the company has cleaned up its branding and refocused the business on supporting the Payment Facilitator model as well as a hybrid deployment approach. The company is now fully licensed in the US as a payments institute and is expected to be fully licensed in the EU later this year. The focus and efficacy of marketing has improved markedly and translated into a number of key wins and growth in the number of merchants, including a number of highly competitive wins and displacements. Both topline growth and profitability improved. Partnership activity remains modest and an area for improvement.
USE CASE: Use Case: Digital and physical goods and services companies companies seeking to scale-up by monetizing opportunities of $5 Million to $15 Million.
COMPANY DESCRIPTION: Founded by a serial Romanian entrepreneur, 2Checkout helps software companies and e-book vendors reach international markets. The 2Checkout Merchant of Record platform provides all-in-one payments, commerce, billing, merchant services, and a large network of affiliates focused on digital goods and software. The company sales, marketing and general management have become largely US-centric, while the bulk of the development remains in Romania. The Company’s official headquarters is in Amsterdam, The Netherlands. 2Checkout is a Francisco Partners portfolio company.
COMPETITORS: Cleverbridge, Nexway, BlueSnap, FastSpring, Stripe and Recurly as well as other best of breed Agile Monetization tool suppliers
MGI 360 Ratings is a comprehensive system for evaluating technology companies. IT organizations use MGI 360 to track suppliers, assess purchasing risks and identify promising new vendors. Vendors utilize MGI 360 to track their markets and evaluate partners. Institutional investors use MGI 360 for independent assessment of tech companies. MGI 360 ratings help lower costs, save time, reduce risks, and identify new opportunities. 
The MGI 360 ratings are on a scale from 0 to 100 and reflect company opinions of MGI analysts in five key areas on a scale of 0 to 20:
  • PRODUCT: How strong is the product competitive position
  • MANAGEMENT: How competent and experienced is the management team
  • CHANNELS: Does the company have a sales capability and channels needed to bring products to market?
  • STRATEGY: Does the company have a realistic view of the opportunity and a compelling strategy for success?
  • FINANCE: Is the company growing and profitable
Each of these key criteria is subdivided into numerous sub-categories. In total, over 149 criteria are combined to generate an MGI 360 rating in each specific market space. Companies can have one or more MGI 360 rating - one for each market. MGI 360 ratings are revised as important developments occur. While the MGI 360 rating process is comprehensive, this scoring system is not meant to be a predictor of company solvency, liquidity, absence of accounting fraud or stock performance. Access to MGI 360 Ratings is by subscription.
MGI Research is an independent industry research and advisory firm focused on disruptive trends in the technology industry. Through ratings, industry benchmarks, best practices groups, subscription research, market forecasts, advisory engagements, industry studies and conferences, MGI Research helps clients identify opportunities for reducing IT costs and minimize technology risks. MGI Research analysts work closely with business and technology organizations to help make timely go/no-go IT investment decisions, optimize vendor relationships, and create practical strategies for new initiatives in agile billing, payments management, order management, CPQ, contract lifecycle management and other elements of agile monetization platform (AMP).
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