JetPay® Corporation (“JetPay” or the “Company”) (NASDAQ:JTPY), a leading provider of debit and credit card processing, payroll, and prepaid card services, today announced the closing of the acquisition of ACI Merchant Systems, LLC (“ACI”), a Langhorne, Pennsylvania based debit and credit card processing company.
The combined company will process approximately $20 billion in payments for approximately 14,000 businesses throughout the United States.
“JetPay affords us the opportunity to provide these services in a quality and easy-to-service manner. We are excited to be part of the JetPay team.”
ACI was founded in 2004 by Michael Collester specifically to provide debit and credit card processing services in partnership with banks, credit unions, and other financial institutions, as well as industry associations and others. ACI delivers these high-quality products and services using scale and service economies that individual banks and credit unions would not be able to provide. ACI services several thousand businesses, primarily in the Mid-Atlantic and Northeast regions of the United States.
Bipin C. Shah, Chairman and CEO of JetPay Corporation, stated: “We are excited about having Mike Collester and his team at ACI join the JetPay family. I have known Mike for many years and have always admired his leadership ability to grow an organization and provide valued and innovative solutions to his customers.” Mr. Shah further commented, “The financial institution delivery channel is one of the core strategic pillars of JetPay, and ACI will not only help us to expand our debit and credit card processing reach, but will also provide an excellent customer base and channel to offer our payroll and prepaid card services.”
“JetPay provides ACI the ability to offer enhanced service to our financial institution customers. The breadth of JetPay’s technologically advanced credit and debit card processing product line will bring our customers added value,” said Michael Collester, President of ACI. “Many of our financial institution customers have asked us about providing additional value-added services like payroll and prepaid card products, to allow these smaller institutions to better compete with their regional and national competitors and generate additional fee revenues.” Mr. Collester continued, “JetPay affords us the opportunity to provide these services in a quality and easy-to-service manner. We are excited to be part of the JetPay team.”
The acquisition will be funded by a combination of a credit facility from Metro Bank of Harrisburg, PA, the sale of Series A Preferred Stock to Flexpoint Ford under an existing commitment, and the issuance of shares of JetPay common stock. The transaction is expected to be immediately accretive.