Acquisition to increase Repay’s total card payment volume to more than $20bn on an annualised basis
BillingTree to be acquired by Repay. (Credit: Mike Johnson from Freeimages)
US-based fintech company Repay has agreed to acquire integrated payments solutions provider BillingTree for about $503m in a cash-cum-stock deal.
The consideration is made up of around $275m in cash and $228m worth shares of Repay.
Following the closing of the deal, Parthenon Capital, which is currently BillingTree’s majority owner, will own around a 10% stake in Repay.
Established in 2003, the Arizona-based BillingTree caters to the healthcare, accounts receivable management (ARM), credit union, and energy industries.
The company is said to enable organisations to get paid quicker and more efficiently by using its technology-enabled suite of products and services, which include a range of payment channels and reporting capabilities.
Its healthcare payments and software platform – CareView is designed to optimise patient communication and encourage patient engagement. It also allows customers to accept all payment modes.
The company had also developed an omnichannel platform called Payrazr, which enables customers to use the medium of their choice for accepting and reconciling payments.
For the current year, the integrated payments solutions provider is projected to see a card payment volume of $4.4bn and a gross profit of $48m.
Its acquisition is likely to boost Repay’s total card payment volume to more than $20bn on an annualised basis while growing the software partner integrations of the latter to over 175.
Repay CEO John Morris said: “BillingTree satisfies all of our acquisition investment criteria, including a large addressable market opportunity that is amid a shift away from legacy payment methods and towards the technology-first, industry-specific payment mediums in which BillingTree specialises.
“Additionally, BillingTree has strong recurring revenue streams, high customer retention, approximately 50 unique ISV integrations, an attractive financial profile, and numerous opportunities for synergy realisation.”
The deal, which is subject to certain customary closing conditions, is anticipated to close by the end of Q2 2021.
Repay, which is based in Atlanta, Georgia, provides integrated payment processing solutions to verticals that have specific transaction processing requirements. The fintech company was acquired by Thunder Bridge Acquisition for $580.7m in 2019.