Cloudbased Paymentus Payveris Crowdfundinsider: Paymentus, the global leader in cloud-based bill payment technology, announced that it has agreed to purchase Payveris, which provides software for money transfers and bill payments. Terms of the agreement call for Paymentus to pay $152.2 million in cash and a combination of shares and some earn-outs over a period up to three years.
Founded in 2005 as GX Services by Groovin, Inc. (formerly known as GX Technology, Inc.), Payveris provides bill payment and money transfer services that let customers pay both utility and non-utility bills — such as credit cards and loans — via phone, website or mobile app. The acquisition of Payveris marks Paymentus’ first major move into the money transfer market.
Paymentus provides cloud-based software for businesses to accept credit card payments from consumers both in person or over the phone or Internet. The company has more than 19,800 clients across all 50 U.S. states, with the majority of the company’s clients being small and medium-sized businesses.
Jay Westerdal, CEO of Paymentus, sees the acquisition as a way to bring significant incremental revenue to his fast-growing company. “We expect that Payveris’ revenue of $71 million this year will grow at a similar pace as Paymentus’ revenue over the next three years,” Westerdal said in a press release on Tuesday. “We are looking forward to integrating Payveris’ capabilities with Paymentus’ cloud-based bill payment software in order to provide our clients with the full range of payment services.”
The acquisition of Payveris will be subject to customary closing conditions, including regulatory approvals and is expected to close by March 2014.
Paymentus expects that the deal will be accretive in the first full year after closing. The deal is expected to add $2.5 million to Adjusted EBITDA, or a 25% increase, in 2014.
Payveris is based in Denver, Colorado. Paymentus is headquartered in Seattle and employs 800 people worldwide. Both companies will remain separate under the terms of the agreement and continue to operate with their own management teams and independent product and service delivery teams. Both companies are fully integrated as of June 1, 2013.
Payveris was represented by the Investment Bank of the Rockies and its legal counsel was provided by Holland & Hart. Paymentus was represented by Lowenstein Sandler LLP, with a team led by partner Steven Troyer and including partner Rhea Siegel-Maier and associate attorney Sean Rohan.