Pipeline Data to acquire Paynet Systems
30 June 2006 | 2035 views | 0
Source: Pipeline Data
Pipeline Data Inc. (OTCBB:PPDA) announced today that it has entered into an agreement to acquire Paynet Systems, Inc., an e-commerce and retail merchant credit card processing provider.
Management expects the acquisition to add approximately 6,500 merchant accounts to Pipeline's existing portfolio, resulting in approximately $200,000 in additional monthly cash flow. It will also generate 400 new merchant applications monthly. The purchase price for the initial acquisition is $9.5 million in cash and $1 million in Pipeline restricted common stock.
Pipeline's Chief Executive Officer, MacAllister Smith stated, "This acquisition enhances our leadership position in the online transaction processing space and further demonstrates our ability to execute our strategy of building shareholder value through a combination of acquisitions and organic growth."