A firm that previously was a service provider for REPAY now is a part of the company.
Repay Holdings Corp., a provider of vertically integrated payment solutions, recently announced the acquisition of TriSource Solutions for up to $65 million, which includes a performance-based earn out.
REPAY said in a news release that the acquisition was financed with a combination of cash on hand and proceeds from borrowings under its existing credit facility.
TriSource, founded in 2007, provides back-end transaction processing services to independent sales organizations (ISO) and operates as a direct ISO on behalf of its owned portfolios and external sales agents. TriSource is headquartered in Bettendorf, Iowa, with an additional office in East Moline, Ill.
Since 2012, TriSource has been REPAY’s primary third-party processor for back-end settlement solutions and a valuable partner that has supported the company’s growth.
“TriSource will enable us to build more intelligent payment solutions and bring these solutions to our customers faster. Additionally, we see the potential for strong organic growth in TriSource’s back-end settlement business, and our long partnership with TriSource has illustrated its inherent value proposition,” REPAY chief executive officer John Morris said. “We are looking forward to leveraging TriSource’s capabilities to drive continued growth.
“Further, the acquisition enhances our M&A strategy, as having our own back-end transaction processing capabilities will allow us to reduce future targets’ transaction processing costs and to expedite other synergy realization efforts. The TriSource acquisition will be immediately and meaningfully accretive to earnings,” Morris went on to say.
REPAY recapped the transaction details, including:
—REPAY acquired TriSource for up to $65 million.
— Sixty million dollars was paid at closing.
— Up to $5 million is structured as a performance based earn out.
— The acquisition was financed with a combination of cash on hand and borrowings under REPAY’s existing credit facility.
— Annualized Adjusted EBITDA is expected to be approximately $7.0 million.
— Combined net leverage expected to be approximately 3.5 times on a post-transaction basis.
“TriSource owners Henry Harp and Bill Brockway, along with the company’s executive management team, have built a top-tier organization. I’ve had the pleasure of working alongside the TriSource team over the past seven years and believe adding them to the REPAY family will be beneficial to all parties,” REPAY president Shaler Alias said.
“I would like to take this opportunity to welcome them to our organization,” Alias added.
Commenting about the acquisition, TriSource Solutions chief operating officer Deborah Brown said, “We are excited to join the REPAY team.
“We have partnered with REPAY for many years and believe they will help us to accelerate our processing business growth. We look forward to working alongside the REPAY team to drive long term growth at the combined company,” Brown went on to say.