Pipeline Data (OTCBB:PPDA), a leading provider of merchant payment processing services, today announced that it has completed the acquisition of PayPassage.
PayPassage is a full service credit card processing solution offered to U.S. merchants in the retail, wholesale, mail/phone order, commercial and e-commerce space. The former owners of PayPassage originally owned Paynet Systems, Inc., another successful full service credit card processing solution to the same merchant markets. Pipeline acquired Paynet in 2006. The former shareholders of PayPassage have formed a new entity that has entered into an exclusive Processing Service Agreement with Pipeline for the provision of merchant processing services.
"The acquisition of PayPassage demonstrates our commitment to our corporate strategy to expand not only through organic growth, but also through the acquisition of strategic relationships from compatible businesses. Pipeline has combined its comprehensive merchant processing solutions with PayPassage's account generation capabilities to further its goal of increasing market share in the online and retail merchant space," said Randy McCoy, the newly appointed Chief Executive Officer of Pipeline.
In February 2009, McCoy joined Pipeline as its CEO when the company restructured its financing obligations and issued a $15 million preferred stock instrument to Pipeline Holdings, Inc., as part of the ComVest Group's capital funding for growth initiatives. "The PayPassage transaction is one example of the kinds of deployment made possible by the ComVest capital infusion. The acquisition enables Pipeline to effectively expand its sales capabilities through the creation of strategic relationships with high-quality ISOs," stated McCoy. "Pipeline intends to continue to deploy its capital to increase market share during these tumultuous economic times."
Jack Chevalier, former president of PayPassage, stated, "This transaction completes another milestone in our relationship with Pipeline. The 2006 PayNet merger was a great success for all parties and created a starting point for us to build another large merchant portfolio company in PayPassage. We are excited about this merger and invigorated to build yet another successful multi-market merchant portfolio under our exclusive processing agreement with Pipeline."