ATLANTA–(BUSINESS WIRE)–Repay Holdings Company (NASDAQ: RPAY) (“REPAY”), a number one supplier of vertically-integrated cost options, at the moment introduced the acquisition of cPayPlus, LLC (“cPayPlus”) for as much as $16.zero million, of which $8.zero million was paid at closing. The remaining $8.zero million may turn into payable within the third quarter of 2021, dependent upon the achievement of sure progress targets. The closing of the acquisition was financed with cash available and won’t materially affect REPAY’s web leverage.
cPayPlus, based in 2017 and headquartered in Salt Lake Metropolis, UT, is an accounts payable (“AP”) automation supplier to quite a lot of industries, with concentrations in automotive, property administration, and discipline companies. cPayPlus’ sturdy expertise platform, which is deeply built-in with its shoppers’ AP workflows and first enterprise useful resource planning (“ERP”) programs, allows significant client-side working efficiencies and seamless cost optimization. cPayPlus boasts a formidable record of ERP integrations within the automotive (e.g., Dealertrack and DealerBuilt), property administration, and discipline companies industries. cPayPlus presently maintains over 26,000 enrolled provider relationships.
“We continue to observe unprecedented demand for comprehensive, technology-first B2B automation and payment solutions, as enterprise customers look for ways to reduce costs and operate more efficiently in an increasingly digital environment. The competition typically focuses on either accounts receivable (“AR”) or AP. Whereas we already do each, the cPayPlus acquisition will strengthen our AP automation providing, additional enabling us to ship best-in-class options that deal with all of our shoppers’ AR and AP automation and cost wants,” stated John Morris, CEO of REPAY. “We are thrilled to welcome the cPayPlus team into the REPAY family. Darin Horrocks and Seth Barnard are AP automation veterans. We are confident that their leadership and vision will prove invaluable as we work together to accelerate growth in our B2B business.”
“We look forward to working with REPAY to capitalize on the ever-increasing demand for AP automation solutions. The already high need for our product has been amplified since the onset of the COVID-19 pandemic. REPAY’s extensive resources will enable us to take advantage of this demand and develop more complete B2B offerings for our clients,” stated Darin Horrocks, CEO of cPayPlus.
REPAY acquired cPayPlus for as much as $16.zero million
- $8.zero million was paid in cash at closing
- As much as $8.zero million may turn into payable within the third quarter of 2021, dependent upon the achievement of sure progress targets
- The acquisition was financed with cash available
- Web leverage is anticipated to approximate 1.25x1 on a post-transaction foundation
- Whereas cPayPlus will not be anticipated to make a fabric monetary contribution for the rest of 2020, cPayPlus’ prime line and gross revenue are rising considerably quicker than the general REPAY company common. cPayPlus is anticipated to ship a extra significant contribution in 2021. Primarily based on historic progress tendencies, we anticipate cPayPlus to generate prime line and gross revenue progress in extra of 100% yearly by 2022.
1 Professional forma for the cash from the first providing and the warrant workout routines, much less the $8.zero million upfront buy price
Excessive Development Market
- The B2B automation and funds market, together with each AR and AP options, is experiencing fast progress, because the abundance of greenfield alternatives is complemented by growing penetration amongst SMB shoppers which have already adopted digital AR and AP automation and cost capabilities
- cPayPlus, in addition to REPAY’s current B2B enterprise, has skilled favorable tendencies on account of the COVID-19 pandemic, which has accelerated a broader paper-to-digital transition inside B2B automation and funds
Sizeable Addressable Market
- cPayPlus’ current automotive, property administration, and discipline companies ERP integrations current cPayPlus with an estimated cost card quantity alternative of $540 billion
- cPayPlus intends to make use of REPAY’s integration-oriented competencies to shortly unlock extra of the estimated +$10 trillion marketplace for SMB AP cost quantity
- Nearly all of REPAY’s present B2B enterprise is concentrated on software program automation and cost options across the AR facet of transactions. The acquisition of cPayPlus will allow REPAY to supply each AP automation and cost options to its current shopper base
- Whereas cross-sell alternatives exist throughout all of REPAY’s present companies, the results are anticipated to be notably impactful amongst REPAY’s B2B and automotive prospects
- Moreover, the one-stop-shop B2B automation and funds providing – that’s, AR coupled with AP – is anticipated to speed up go-forward gross sales throughout all REPAY enterprise strains
- B2B automation and cost specialists Darin Horrocks (cPayPlus CEO) and Seth Barnard (cPayPlus CTO) will be a part of REPAY post-close, serving as leaders inside the B2B enterprise
This communication comprises “forward-looking statements” inside the that means of the Personal Securities Litigation Reform Act of 1995. Such statements embrace, however are usually not restricted to, statements about future monetary and working outcomes, our plans, targets, expectations and intentions with respect to future operations, gross sales alternatives and progress, services; and different statements recognized by phrases resembling “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimated,” “believe,” “intend,” “plan,” “projection,” “outlook” or phrases of comparable that means. These forward-looking statements embrace, however are usually not restricted to, statements relating to the anticipated affect of the COVID-19 pandemic, REPAY’s trade and market sizes, future alternatives for REPAY, together with cPayPlus, in addition to the extent of cPayPlus’ progress and monetary contributions. Such forward-looking statements are based mostly upon the present beliefs and expectations of our administration and are inherently topic to vital enterprise, financial and aggressive uncertainties and contingencies, lots of that are troublesome to foretell and usually past our management. Precise outcomes and the timing of occasions may differ materially from the outcomes anticipated in these forward-looking statements.
Along with components beforehand disclosed in prior experiences filed with the U.S. Securities and Trade Fee and people recognized elsewhere on this communication, the next components, amongst others, may trigger precise outcomes and the timing of occasions to vary materially from the anticipated outcomes or different expectations expressed within the forward-looking statements: the impacts of the continued COVID-19 coronavirus pandemic and the actions taken to manage or mitigate its unfold (which impacts are extremely unsure and can’t be fairly estimated or predicted presently); a delay or failure to combine and notice the advantages of the cPayPlus acquisition and any difficulties related to advertising services within the AP automation market to REPAY’s current B2B prospects; adjustments within the cost processing market wherein REPAY competes, together with with respect to its aggressive panorama, expertise evolution or regulatory adjustments; adjustments within the vertical markets that REPAY targets; dangers referring to REPAY’s relationships inside the cost ecosystem; the danger that REPAY may not be capable to execute its progress methods, together with figuring out and executing acquisitions; dangers referring to information safety; adjustments in accounting insurance policies relevant to REPAY; and the danger that REPAY may not be capable to develop and keep efficient inside controls.
Precise outcomes, efficiency or achievements may differ materially, and doubtlessly adversely, from any projections and forward-looking statements and the assumptions on which these forward-looking statements are based mostly. There will be no assurance that the info contained herein is reflective of future efficiency to any diploma. You’re cautioned to not place undue reliance on forward-looking statements as a predictor of future efficiency as projected monetary info and different info are based mostly on estimates and assumptions which are inherently topic to numerous vital dangers, uncertainties and different components, lots of that are past our management. All info set forth herein speaks solely as of the date hereof within the case of details about REPAY or the date of such info within the case of data from individuals aside from REPAY, and we disclaim any intention or obligation to replace any forward-looking statements on account of developments occurring after the date of this communication. Forecasts and estimates relating to REPAY’s trade and finish markets are based mostly on sources we consider to be dependable, nevertheless there will be no assurance these forecasts and estimates will show correct in complete or partly. Annualized, projected and estimated numbers are used for illustrative goal solely, are usually not forecasts and may not replicate precise outcomes.
REPAY offers built-in cost processing options to verticals which have particular transaction processing wants. REPAY’s proprietary, built-in cost expertise platform reduces the complexity of digital funds for retailers, whereas enhancing the general expertise for shoppers and companies.