Business
Excel Corporation Divests Operations of Securus Subsidiary to Chyp
Excel Corporation Divests Operations of Securus Subsidiary to Chyp.
About this update from Excel Corp
[{"type":"text","content":"\n\n IRVING, Texas, May 02, 2016 (GLOBE NEWSWIRE) -- Excel Corporation (OTCQB:EXCC), a leading provider of integrated financial and transaction processing services to merchants throughout the United States today announced that on April 30, 2016, it sold substantially all of the operations of its wholly-owned subsidiary, Payprotec Oregon dba Securus Payments (“Securus”) to Chyp, LLC (“Chyp”), a newly formed entity created and owned by former Securus founders and executives, Steven Lemma and Mychol Robirds. In connection with the transaction, Chyp executed a three year exclusive preferred marketing agreement with Excel’s subsidiary, eVance Processing Inc. (“eVance”).\n Chyp acquired certain assets and substantially all of the operations of Securus, including the sales and marketing operations located in Portland, OR and West Palm Beach, FL. Nearly all of Securus’ approximately 100 employees were hired by Chyp. A small number of key customer service personnel will remain with Securus, in order to assist in the transition of customer care to eVance’s merchant services group in Atlanta, GA. In connection with the purchase agreement, Excel acquired the Company’s Series A Preferred Stock previously held by Mr. Lemma and Mr. Robirds, who will remain significant holders of Excel common stock. The Company is retaining the current approximately 5,000 merchants and related merchant processing residual portfolio, which generated revenues of approximately $4.5 million in 2015, as well as the Securus related liabilities. As part of its exclusive preferred marketing agreement with eVance, Chyp will board merchants on eVance’s wholesale processing platform. In addition, eVance will provide ongoing services to the Securus portfolio merchants, bringing Excel’s total consolidated merchant base to well over 10,000 merchants. \"The sale to Chyp streamlines our merchant services operations and will allow us to focus our resources and management energy on higher return merchant portfolio acquisitions, while substantially lowering total operating costs,\" said T. A. “Kip” Hyde, Jr., Excel's CEO. “We expect our 2016 operating income to improve by approximately $3 million as a result of this transaction and should result in positive net income for the year.” Mo...