Repay To Acquire Trisource Solutions

Repay Holding Corporation is a global leading supplier of client based services such as integrated payment solutions. They specialize in providing clients who have specific transaction processing needs with their services, helping them to reduce the technicalities of online payment for lenders while also ensuring that the customers receive the best possible service they can get. 

According to the CEO of repay, John Morris, “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. 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.’

TriSource is known for its services in providing clients with back-end clearing and settlement platform services. It has a vast client base ranging from independent sales organizations to agent offices, to banks and it covers various regions all around the united states. Other services provided by the business include; provision of front- end authorization services, and also enhancing the capabilities of single- source processing for its clients. Prior to the acquisition, TriSource and REPAY have been in a long-standing partnership in ensuring massive company growth from both ends.

Details of the acquisition includes;

  • A joint net worth estimated to be about 3.5x more after the transaction
  • Financing of the acquisition by repay was made possible with cash on hand and also borrowings from their credit facility
  • Annual adjusted EBITDA estimated at about $7.0 million
  • A total sum of $65 million paid on acquisition; $60 million paid at closing and $5 million as a performance based earn out.