JetPay Corporation Announces Acquisition of ACI Merchant Systems
November 10 2014 - 9:21AM
Business Wire
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.
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.
About JetPay Corporation
JetPay Corporation, based in Berwyn, PA, is a leading provider
of vertically integrated solutions for businesses including card
acceptance, processing, payroll, payroll tax filing and other
financial transactions. JetPay provides a one vendor solution for
payment services, debit and credit card processing, ACH services,
and payroll and tax processing needs of businesses throughout the
United States. The Company also offers low-cost payment choices for
the employees of these businesses to replace costly alternatives.
The Company’s vertically aligned services provide customers with
convenience and increased revenues by lowering payments-related
costs and by designing innovative, customized solutions for
internet, mobile, and cloud-based payments. Please visit
www.jetpay.com for more information on what JetPay has to offer or
call 866-4JetPay (866-453-8729).
About ACI Merchant
Systems
Originally founded in 2004, ACI Merchant Systems,
LLC, headquartered in Langhorne, Pennsylvania, has become
one of the nation’s premier providers of transaction processing
services and payment technologies to financial institutions, VAR's
and merchants. ACI provides state-of-the-art payment processing
services to an entire array of merchant types and sizes, ranging
from the smallest of home-based businesses to mid-sized and
high-volume merchants. ACI's executive management team has
over 75 years of combined industry specific experience. In
partnership with ACI, clients gain not
only a relationship with an integrity-based company they
can trust, but also a partnership with a company that
continually strives to provide innovative, cost effective payment
processing solutions. For more information, please visit
www.acimerchant.com.
Forward-Looking Statements
This press release includes “forward-looking statements” within
the meaning of the safe harbor provisions of the United States
Private Securities Litigation Reform Act of 1995. JetPay’s actual
results may differ from its expectations, estimates and projections
and consequently, you should not rely on these forward-looking
statements as predictions of future events. Words such as “expect,”
“estimate,” “project,” “budget,” “forecast,” “anticipate,”
“intend,” “plan,” “may,” “will,” “could,” “should,” “believes,”
“predicts,” “potential,” “continue,” and similar expressions are
intended to identify such forward-looking statements. These
forward-looking statements involve significant risks and
uncertainties that could cause the actual results to differ
materially from the expected results. Most of these factors are
outside JetPay’s control and are difficult to predict. Factors that
may cause such differences include, but are not limited to, those
described under the heading “Risk Factors” in the Company’s Annual
Report filed with the Securities and Exchange Commission (“SEC”) on
Form 10-K for the fiscal year ended December 31, 2013, the
Company’s Quarterly Reports on Forms 10-Q and the Company’s Current
Reports on Form 8-K.
JetPay cautions that the foregoing list of factors is not
exclusive. Additional information concerning these and other risk
factors is contained in JetPay’s most recent filings with the
Securities and Exchange Commission. All subsequent written and oral
forward- looking statements concerning JetPay or other matters and
attributable to JetPay or any person acting on its behalf, are
expressly qualified in their entirety by the cautionary statements
above. JetPay cautions readers not to place undue reliance upon any
forward-looking statements, which speak only as of the date made.
JetPay does not undertake or accept any obligation or undertaking
to release publicly any updates or revisions to any forward-looking
statements to reflect any change in its expectations or any change
in events, conditions or circumstances on which any such statement
is based.
JetPay CorporationPeter DavidsonVice
Chairman484-324-7980Peter.davidson@jetpaycorp.comorJetPay
CorporationJoan Wurzel, Senior Vice PresidentDirector of Corporate
Communications610-747-0256joan.wurzel@jetpaycorp.com
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