Investment Empowers Next Stage of Growth and Innovation for
Leading Merchant Services Provider
CLEVELAND, Aug.
1, 2024 /PRNewswire/ -- Financial Technology company
Electronic Merchant Systems (EMS), an industry-leading merchant
solutions and payments provider, is pleased to announce a strategic
majority investment by BharCap Partners, LLC ("BharCap"), a
Greenwich, CT based private
investment firm focused on the financial services sector. The
investment marks a significant milestone in EMS' growth journey and
enables the company to accelerate growth and enhance its client
service offerings.
EMS offers payment processing solutions for retail and eCommerce
merchants through three distinct go-to-market sales channels, with
a focus on eCommerce and small-to-medium sized merchants. EMS
processes approximately $6 Billion in
transaction volume for 25,000 merchants nationwide. With a seasoned
leadership team, a scalable platform, and unique distribution
channels, EMS is well-positioned to capitalize on growth
opportunities and expand its merchant network.
Afshin Yazdian, who joined EMS as
CEO and Executive Chairman in 2023, commented, "This is a big
moment for EMS and our incredible team, and we look forward to
working with a great partner in BharCap. We are now well positioned
to continue the transformation of EMS into a leading FinTech
Platform. I am grateful for BharCap's belief in our vision and
strategy. I am excited to work with the team and BharCap to
continue to build our amazing organization."
EMS was previously majority-owned by Jim
Weiland, who founded the company in 1988. The company began
as a local three-person sales office and has expanded to operate
nationwide. Jim will retain a minority ownership stake in EMS and
will remain on the EMS Board of Directors post-transaction.
Jim noted, "I could not be happier about the outcome for EMS.
Afshin has a proven track record of building great companies and
established himself as a highly effective leader who can now take
EMS to another level of size and scale. I am also grateful to FT
Partners for their support throughout this transaction. I look
forward to working with Bharath and the team at BharCap as I
believe they are the perfect partner for me and the EMS management
team. I admire BharCap's approach and style when working with
founders; it is clear they have walked in our shoes. The BharCap
team's operational and strategic orientation, coupled with their
sector expertise, will help drive our next phase of growth. I also
would like to thank our dedicated and hardworking employees, who
play an integral part in the growth and achievements of EMS. Our
company's success is a reflection of their efforts. I am excited
for the growth opportunities that will be available to them as EMS
enters this new chapter."
Bharath Srikrishnan, Co-Founder
and Managing Partner of BharCap, noted, "The payment processing
industry was the first financial services sub-sector I worked in 24
years ago, and I have always considered it to be one of the most
attractive sub-sectors in which to invest. We first met EMS almost
a decade ago, and we have deep respect for EMS' ability to deliver
unparalleled service to their partners in the digital economy. As
entrepreneurs ourselves, we have tremendous empathy for founders,
and are therefore often chosen to be a company's first capital
partner – and we do not take this responsibility lightly. We hope
to build on EMS' great legacy while also leveraging our proven
toolkit to help management execute its next phase of innovation and
expansion."
In the past 15 months, BharCap has invested approximately
$700 Million of equity, comprising
$1.7 Billion in enterprise value, in
five companies in the payment processing, insurance services,
insurance distribution, wealth management and specialty finance
sub-sectors of financial services, in each case backing proven
management teams to capitalize on demonstrated secular growth
trends.
With BharCap's investment and partnership, EMS expects to become
an active player in the M&A market. In January 2024, EMS further bolstered its
distribution channels and significantly expanded its technology
stack through the acquisition of Los
Angeles, California-based PaymentCloud.
Ethan Wang, BharCap Co-Founder
and Partner, added, "Afshin brings considerable M&A expertise
to EMS, which coupled with BharCap's resources, will enable the
company to become a credible acquiror of payment processing
businesses and merchant portfolios. We look forward to helping EMS
develop into a reliable and repeatable strategic
acquiror."
In conjunction with BharCap's investment, BharCap Operating
Partners and strategic advisors Raj Date and Karl Mehta will join the EMS Board of Directors
alongside Bharath Srikrishnan,
Ethan Wang, Jim Weiland and Afshin
Yazdian. Both Raj and Karl are financial technology veterans
who bring decades of experience to the EMS Board.
Financial Technology Partners (FT Partners) served as exclusive
financial advisor and Sullivan & Cromwell along with UB
Greensfelder served as legal counsel to EMS. Simpson Thacher &
Bartlett LLP served as legal counsel to BharCap. The terms of
the transaction were not disclosed.
About Electronic Merchant Systems:
Headquartered in Cleveland,
Ohio, Electronic Merchant Systems is an industry-leading
merchant services provider that businesses depend on for their
processing needs. Over 25,000 retail, internet, and omnichannel
customers nationwide rely on the firm's diverse suite of modern
payment solutions.
From credit card processing and risk management to gateways and
virtual terminals, sales software, and web management, EMS offers
comprehensive tools that empower businesses to thrive. EMS enables
frictionless onboarding, swift underwriting, and exemplary
post-approval merchant support. Our operations encompass research
and development, underwriting, sales, marketing, and end-to-end
innovation. EMS further leverages the robust services of its
subsidiaries, MaxxPay, Total Touch, Paysley and PaymentCloud, to
drive success for clients. Discover more at
https://www.emscorporate.com.
About BharCap Partners:
BharCap Partners, LLC is a private investment firm investing in
businesses across the financial services industry including
financial technology and tech-enabled services; insurance
distribution and insurance services; and asset and wealth
management. BharCap manages over $2
billion of capital across 12 investments. For more
information, please visit https://bharcap.com.
Media Contacts:
Delia
Cannan / Pamela Greene
Reevemark
212-433-4600
BharCapPartnersTeam@reevemark.com
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SOURCE Electronic Merchant Systems