Business
REPAY Announces the Acquisition of APS Payments
ATLANTA--(BUSINESS WIRE)-- Repay Holdings Corporation (NASDAQ: RPAY) (“REPAY”), a leading provider of vertically-integrated payment solutions, today
About this update from Repay Holdings Corporation
[{"type":"text","content":" ATLANTA--(BUSINESS WIRE)--\nRepay Holdings Corporation (NASDAQ: RPAY) (“REPAY”), a leading provider of vertically-integrated payment solutions, today announced the acquisition of APS Payments (“APS”) for $60 million, of which $30 million was paid at closing. The remaining $30 million may become payable upon the achievement of performance growth targets. The closing of the acquisition was financed with a combination of cash on hand and proceeds from borrowings under REPAY’s existing credit facility.\n\n\nAPS, founded in 2008 and headquartered in Mesa, AZ, is an integrated payments provider focused on the B2B vertical. APS goes to market in the B2B vertical through key integrations with leading ERP platforms.\n\n\n“APS fits our M&A strategy of acquiring high growth businesses with attractive margins, a strong existing distribution model, and technology enhancement opportunities – operating in large, fast growing addressable markets. In addition, APS provides us with end market diversification and organic growth opportunities, which we believe will help drive shareholder value,” said John Morris, CEO of REPAY. “We are thrilled to welcome the APS team into the REPAY family and look forward to working together to grow B2B electronic payments, as businesses continue to implement new payment technology.”\n\n\n“Our mission has been to create highly robust, yet easy to use, payment solutions for our clients. We believe joining the REPAY team will enable us to advance that mission and capitalize on the on-going growth in B2B electronic payments, as businesses continue to implement new payment technology and move away from issuing and accepting paper checks,” said David Ford, CEO of APS.\n\n\nTransaction Details\n\n\n\nREPAY acquired APS for $60 million\n\n\n$30 million was paid at closing\n\n\nUp to $30 million may be payable through performance based earn outs, based on APS’ performance for the 12-month periods ending December 2019, June 2020, and December 2020\n\n\n\n\nAPS’ estimated full year 2019 metrics\n\n\nPayment Card Volume – approximately $2 billion\n\n\nGross Profit – approximately $11 million\n\n\nAdjusted EBITDA – approximately $6.5 million (includes $0.5 million of pro forma transaction processing cost synergies)\n\n\n\n\nThe closing of the acquisition was financed with a combination of cash on hand and borrowings under REP...