Veracity Payment Solutions, a leading merchant acquirer and provider of payment transaction processing services, today announced its acquisition of Vanco Services, LLC, a Minnesota-based provider of electronic payment solutions to faith-based organizations, healthcare organizations, financial institutions, nonprofits, schools, municipalities and other entities.
As part of the acquisition, Veracity and Vanco will be rebranded as "Vanco Payment Solutions."
Vanco processes both credit card and ACH transactions on its robust payment platform. The platform not only supports Vanco's own proprietary suite of online, mobile, in-person and batch payment solutions, it also provides the back office credit card, debit card and ACH processing for more than 60 different software companies via web services integrations. In addition, Vanco systems enable the end-to-end electronic transfer and posting of consumer bill payments initiated anywhere on the nation's highly fragmented network of online banking sites - payments that would otherwise be sent by check and require manual intervention.
"Vanco is already a successful company on a great growth trajectory," said Jeanne Spencer Rose, President and Chief Manager for Vanco Services. "And now, with Veracity's strategic capabilities and financial backing, we have the resources to take the company to the next level even faster." Rose, who has led Vanco for more than 15 years, will continue to manage the Minnesota business as part of Veracity's executive team.
In addition, Veracity has appointed Kevin Lee as Chief Executive Officer. With more than 20 years of diverse payment experience, Lee also served successfully in the same role for CRE Secure and Skylight Financial, two high-growth, technology oriented payment companies based in Atlanta, Georgia. "I am excited to join the organization during this important time of growth and strategic expansion," said Lee. "The company's reputation in the marketplace, along with its investments in technology and talent will continue to fuel significant growth." Jeanne Spencer Rose will report to Lee as President and General Manager.
Lee's predecessor and Veracity Founder, Joseph Cohane, will continue with the company as Executive Chairman. "We are all excited about the momentum of the business," said Cohane. "On behallf of our employees and investors, I am thrilled to have Kevin and Jeanne join the leadership team as we prepare to embark on this new chapter," said Cohane.
The two organizations now serve a combined total of more than 38,000 clients nationwide and process more than $11 billion in electronic payments. They also collectively support over 200 client partners that include financial institutions, affinity and trade associations, professional services and independent software vendors/developers.
The rebranding of the company as Vanco Payment Solutions will capitalize on the strong name recognition of Vanco Services and establish a single corporate identity for the growing company. The rebranding campaign will continue throughout 2014.
Veracity is backed by an $80 million commitment from Great Hill Partners, a private equity firm based in Boston, which will continue to consider acquisitions in the electronic payments space. Terms of the acquisition were not disclosed.
Raymond James & Associates acted as financial advisor to Vanco Services, LLC in this transaction.