Payroc LLC, a leading merchant acquirer and payment processor, is excited to announce it has entered into a definitive agreement to merge with Payscape, NXGEN International, and BluePay Canada. The transaction creates a full-service global merchant acquiring and payment facilitator powerhouse operating in 46 countries, while serving more than 55,000 merchants processing $23 billion in annual bankcard volume. Advancing into the top ranks of non-bank merchant acquirers, the combined enterprise, with its additional capabilities, will carry a new and enhanced Payroc brand. The new Payroc is poised to drive rapid expansion and growth through sales, marketing and forward-facing technology integrated with proprietary U.S. and international front-end and back-end processing platforms.
“It’s an exciting time for all of us joining together to create an industry-leading global merchant acquirer, processor and payment facilitator,” said James Oberman, chief executive officer of Payroc. “We are a unique and specialized full-service business, serving both the new world of integrated payments while continuing to support the traditional independent sales organization and agent channels here in North America and globally,” added Oberman.
The consolidated company will have more than 1,000 employees and independent payment professionals led by Oberman, who will serve as the chief executive officer of the combined company. Adam Bloomston, currently chief executive for Payscape and NXGEN, will serve as president of the combined company. The remainder of the executive team will consist of a combination of leaders from each of the four principle merger partners.
“We’re building something unique, impressive and meaningful. Adding Payroc to the mix is a formative next step in our strategic efforts,” said Bloomston. “We are extremely excited about the combination. We are pleased to have Jim lead us into the future given his tremendous experience and reputation in payments,” added Bloomston.
The merger was sponsored by Parthenon Capital, a growth-oriented private equity firm that focuses on building franchise assets in the financial services and health care sectors. “We are proud that after two very productive years of effort on this strategy, we’ve brought together four complimentary companies and executive teams. The result is a foundational payments industry powerhouse with tremendous opportunity,” commented Co-Chief Executive Officer Brian Golson at Parthenon Capital. Zach Sadek, a partner with Parthenon Capital remarked, “Since this initiative began with our partnership with Tom Nitopi and the NXGEN team, we have been focused on bringing together exceptional businesses with powerful technology-driven solutions that bring value to their customers and business partners. Payroc and BluePay Canada are perfect complements to this strategy. Both enhance the company’s global presence and expand capabilities in the attractive payment facilitation and business-to-business payments markets.”
The merger is subject to satisfaction of customary closing conditions. Keefe, Bruyette & Woods (KBW), a Stifel company, acted as financial advisor for Payroc in connection with this transaction. Parthenon Capital received advice from Boston-based Estabrook Advisors and Kirkland & Ellis LLP. Financial terms of the private transaction were not disclosed.
