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CSG acquires iCG Pay for $17 million

Source: CSG

CSG (NASDAQ: CSGS) today announced it has acquired iCheckGateway.com, LLC (“iCG Pay”), a North American ACH and credit card payment processing company. Management expects this acquisition to be accretive to CSG’s 2024 profitability.

iCG Pay has a rapidly growing merchant customer base in high recurring revenue industry verticals including financial services, insurance, utilities and government. Both CSG and iCG Pay provide market leading solutions in ACH and credit card processing such that merchants and independent software vendor (ISV) partners will benefit greatly from our combined offerings once the two platforms are fully integrated. The acquisition also adds attractive new ISV channel partnerships and a proven team of payments leaders who will help extend CSG’s leadership in the North American payments markets.

“We are extremely excited to welcome the talented iCG Pay team and the innovative merchants and ISV partners to CSG,” said Brian Shepherd, president and chief executive officer of CSG. “CSG is a culture first, customer obsessed technology leader focused on solving our customers’ biggest business challenges. This acquisition is a great example of our relentless commitment to grow and diversify our business in a way that adds value for shareholders, customers and employees.”

iCG Pay has historically delivered double-digit organic revenue growth with 2023 total revenue less transaction fees of approximately $9.5 million. CSG paid an upfront purchase price of $17 million1.

1 There are additional earn-out amounts tied to performance goals.

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