ACG Atlanta Announces the 2019 Deals and Dealmakers of the Year

ATLANTA – Oct. 17, 2019 – The Atlanta Chapter of The Association for Corporate Growth® (ACG), a global professional organization with the mission of Driving Middle-Market Growth®, recognizes the companies below as this year’s honorees. A celebration and the presentation of the awards will be held on November 21st.

“All of the awards selected this year exemplify ACG Atlanta’s focus on growth and demonstrate the strength and significance of Atlanta-based companies and investors,” said Melanie Brandt, President and CEO of ACG Atlanta. “Our winners achieved the highest performance and deal execution standards, representing the best of the highly qualified nominees this year.”

The ACG Atlanta Deals of the Year committee panel consists of a wide variety of ACG Member executives that comprise the local deals community. Nominations were considered based on the following criteria: economic development impact, complexity, involvement of strategic Atlanta business sectors, products or services with potential for significant local and global impact, and involvement of Atlanta investors, executives, and serial entrepreneurs.

ACG Atlanta will present awards to winners on November 21st at the Atlanta History Center. Herschel Walker, the University of Georgia football legend and successful businessman is the featured Keynote Speaker.

2019 Deal Honorees include:

  • Mega/Large Cap – SunTrust & BB&T Merger
  • Middle-Market – Argenbright Holdings & Delta Global Services
  • REIT – Cortland
  • Innovative Financing – REPAY Realtime Electronic Payments
  • Venture Deal – Salesloft
  • Dealmaker of the Year – Jim Childs, Managing Partner & CEO at Bowstring Advisors, a division of Citizens Capital Markets
  • Legend Award – Cam Lanier, Chairman & CEO of ITC Holding Company, LLC and ITC Capital Partners, LLC

About ACG Atlanta

The Association for Corporate Growth (ACG) comprises more than 14,500 members from corporations, private equity, finance, and professional service firms representing Fortune 500, Fortune1000, FTSE 100, and mid-market companies in 59 chapters in North America and Europe. Founded in 1974, ACG Atlanta is one of the oldest and most active chapters, providing the area’s executives and professionals a unique forum for exchanging ideas and experiences concerning organic and acquisitive growth. Programs include Atlanta ACG Capital Connection, The Georgia Fast 40 Honoree Awards and Gala, a Wine Tasting Reception, a Deal of the Year event as well as an active Women’s Forum and Young Professionals group. For more information, visit: acgatlanta.org or connect with ACG Atlanta via Facebook, LinkedIn and Twitter.

REPAY Announces the Acquisition of APS Payments

ATLANTA–(BUSINESS WIRE)–Oct. 14, 2019–Repay 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.

APS, 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.

“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.”

“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.

Transaction Details

  • REPAY acquired APS for $60 million
    • $30 million was paid at closing
    • Up 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
  • APS’ estimated full year 2019 metrics
    • Payment Card Volume – approximately $2 billion
    • Gross Profit – approximately $11 million
    • Adjusted EBITDA – approximately $6.5 million (includes $0.5 million of pro forma transaction processing cost synergies)
  • The closing of the acquisition was financed with a combination of cash on hand and borrowings under REPAY’s existing credit facility
  • Combined net leverage is expected to approximate 3.5x on a post-transaction basis1

Strategic Rationale

  • Organic Growth Opportunities
    • New vertical expansion and diversification into the +trillion dollar B2B market
    • APS is capitalizing on the on-going growth in B2B electronic payments, as businesses continue to move away from issuing and accepting paper checks
    • Large merchants, high volumes, large average ticket sizes, and low attrition rates characterize the B2B space, relative to most payment end markets
  • Opportunity to Leverage REPAY’s Technology Capabilities
    • APS’ technology infrastructure closely resembles that of businesses REPAY has acquired in the past; we understand how to successfully integrate and enhance these types of assets
    • Migration to REPAY’s technology platform and acceleration of ERP software integrations expected to result in substantial end market expansion
  • Shareholder Value Creation
    • The acquisition is immediately accretive to earnings

Forward-Looking Statements

This communication contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements about future financial and operating results, our plans, objectives, expectations and intentions with respect to future operations, products and services; and other statements identified by words such as “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimated,” “believe,” “intend,” “plan,” “projection,” “outlook” or words of similar meaning. These forward-looking statements include, but are not limited to, statements regarding REPAY’s industry and market sizes, future opportunities for REPAY, as well as the APS estimated full year performance metrics. Such forward-looking statements are based upon the current beliefs and expectations of our management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are difficult to predict and generally beyond our control. Actual results and the timing of events may differ materially from the results anticipated in these forward-looking statements.

In addition to factors previously disclosed in prior reports filed with the U.S. Securities and Exchange Commission and those identified elsewhere in this communication, the following factors, among others, could cause actual results and the timing of events to differ materially from the anticipated results or other expectations expressed in the forward-looking statements: a delay or failure to integrate and realize the benefits of the APS acquisition and any difficulties associated with marketing products and services in the B2B vertical market in which REPAY does not have any experience; a delay or failure to integrate and realize the benefits of the TriSource acquisition and any difficulties associated with marketing products and services in the back-end processing market in which REPAY does not have prior experience; changes in the payment processing market in which REPAY competes, including with respect to its competitive landscape, technology evolution or regulatory changes; changes in the vertical markets that REPAY targets; risks relating to REPAY’s relationships within the payment ecosystem; the risk that REPAY may not be able to execute its growth strategies, including identifying and executing acquisitions; risks relating to data security; changes in accounting policies applicable to REPAY; and the risk that REPAY may not be able to develop and maintain effective internal controls.

Actual results, performance or achievements may differ materially, and potentially adversely, from any projections and forward-looking statements and the assumptions on which those forward-looking statements are based. There can be no assurance that the data contained herein is reflective of future performance to any degree. You are cautioned not to place undue reliance on forward-looking statements as a predictor of future performance as projected financial information and other information are based on estimates and assumptions that are inherently subject to various significant risks, uncertainties and other factors, many of which are beyond our control. All information set forth herein speaks only as of the date hereof in the case of information about REPAY or the date of such information in the case of information from persons other than REPAY, and we disclaim any intention or obligation to update any forward-looking statements as a result of developments occurring after the date of this communication. Forecasts and estimates regarding REPAY’s industry and end markets are based on sources we believe to be reliable, however there can be no assurance these forecasts and estimates will prove accurate in whole or in part. Annualized, projected and estimated numbers are used for illustrative purpose only, are not forecasts and may not reflect actual results.

About REPAY

REPAY provides integrated payment processing solutions to verticals that have specific transaction processing and technology needs. REPAY’s proprietary, integrated payment technology platform reduces the complexity and enhances the experience of electronic payments.

_______________________
1 Calculated based on the estimated twelve months ending December 31, 2019 pro forma Adjusted EBITDA of REPAY, TriSource, and APS on a combined basis, after giving effect to new borrowings under the existing credit facility and assuming that all cash and cash equivalents, on a combined basis, offset REPAY’s post-transaction indebtedness.

View source version on businesswire.com:
https://www.businesswire.com/news/home/20191014005579/en/

Source: Repay Holdings Corporation

Contacts

Investor Relations Contact for REPAY:
repayIR@icrinc.com

Media Relations Contact for REPAY:
Kristen Hoyman
(404) 637-1665
khoyman@repay.com

Credit Unions & Fintech Firms: A Great Partnership Opportunity

Is Your Credit Union Keeping Up with Modern Technology?

Seventy-nine percent of credit union members would leave their credit union for a financial technology (fintech) firm for convenience and easy access to services.

If you are a credit union, this figure should scare you. But don’t jump to any hasty conclusions just yet — you don’t have to invest a billion dollars in new technology. You can compete with larger financial institutions even if you don’t have the same access to funds.

You do have options. At REPAY, we empower credit unions to enhance the member experience. Our real-time payment technology solutions enable credit unions to provide faster, more streamlined digital service offerings.

Buy, Build, or Partner

Why build something brand new when you can partner or buy?

Banks and credit unions have been dealing with the rise of fintech by choosing one of three options: buy, build, or partner. A few large institutions have purchased smaller fintech disruptors and made them their own. For instance, SunTrust bought FirstAgain and rebranded it as SunTrust’s online lending arm, Lightstream.  Other banks have chosen to build their technology, as evidenced when Goldman Sachs introduced Marcus, its online banking service.

While buying or building new technology can work for large financial institutions, smaller establishments have chosen another route – partnership. Many credit unions are in a place where partnering with a fintech firm makes the most sense, regardless of how much capital they’re willing to spend on new technology.

This Forbes piece describes how most credit unions spend a similar percentage of assets (0.42%) on new technology, as compared to a group of nine mega- and regional banks. Credit unions only spend 12% less than the megabanks do, the difference due to their smaller size. However, credit unions can use that smaller size to their advantage by remaining agile and adaptable to ever-changing consumer demands.

As this PYMNTS.com article states, fintech firms “aren’t an adversarial force in the market for credit unions. Rather they are potential partners for filling the gaps in service offerings.” And we couldn’t agree more. Each side brings something valuable to the table.

  • Credit unions foster a much higher level of trust among their members when compared to banks and their customers. Credit unions also boast a much higher satisfaction rate than do most other financial institutions.
  • Fintech firms bring new technology and innovation, allowing members to make payments faster, apply for loans online, and transact business around the clock.

When the two partner up, your credit union runs in a more modern, efficient, and agile manner thanks to the introduction of new technology.

Fintech Helps Answer Your Most Common Questions

A partnership with a fintech business means you can use the most advanced technology to streamline service offerings. You can give your members better answers to their most common questions:

  • Can I apply for a mortgage with my credit union?
    • Why, of course, you can! And now, you can apply online, seamlessly submit documentation, and manage your loan payments on our mobile app.
  • Can I use my credit union for business?
    • Definitely! Not only can you open a business account, but you can also process customer payments. You can also text us for service and access your account 24/7.
Credit Unions and Fintech Firms Are Better Together

Well-run credit unions do not threaten fintech firms. They don’t want to be credit unions, and they rarely seek banking licenses. However, because fintech firms often specialize in a few specific services, it makes sense they would want to fill those solution gaps. Credit unions, on the other hand, are always looking for ways to provide better technology to their members. Therefore, a partnership between a fintech firm and a credit union is an ideal scenario, thereby providing all members with both cutting-edge technology and premier customer service.

In future articles, we are going to examine issues like technological trends for credit unions and how staying small and agile is an advantage in a market of banking giants. If you are curious about how the most advanced payment technologies can help your credit union grow, contact us to request a demo.