JetPay Corporation Announces CollectorSolutions Merger
BERWYN, PA–(Marketwired – February 24, 2016) – JetPay® Corporation (“JetPay” or the “Company”) (NASDAQ: JTPY), a leading provider of ecommerce debit and credit card processing, payroll and human capital management, and prepaid card services, today announced the signing of a merger agreement with CollectorSolutions, Inc. (“CSI”), a Pensacola, Florida based debit and credit card processing company. CSI is expected to bring approximately $700 million of annual credit and debit card processing volume and approximately $4.50 billion of annual e-check processing volume to JetPay. On a combined basis, the Company will serve over 15,300 merchants throughout the United States.
CSI was founded in 1999 by Gene M. Valentino to provide debit and credit card processing services to government agencies and utilities. CSI delivers these high-quality products and services through a user-friendly gateway and reporting system that enables all users to easily integrate data and real-time reporting. CSI services several hundred state and local government agencies and utilities throughout the United States.
Bipin C. Shah, Chairman and CEO of JetPay Corporation, stated: “We are thrilled to have Gene Valentino and his team at CSI join the JetPay family. Gene is both highly creative in business as well as being an inspirational leader, with the demonstrated ability to grow an organization that provides valued and innovative solutions to his customers.” Mr. Shah further commented, “I firmly believe that more and more consumers will pay government, utility and other household bills electronically, and serving this market is one of the core ecommerce strategic pillars of JetPay. CSI will not only provide us with enhanced technology, they will also help us expand in these and similar segments, and will provide an excellent customer base and channel to offer our payroll and prepaid card services.”
“JetPay provides CSI the ability to utilize our combined technology to even further penetrate the government, not-for-profit, and utility markets, but more importantly JetPay helps us reach out into additional underserved markets because of the breadth of their unsurpassed technology,” said Gene Valentino, Chairman of CSI. “We couldn’t be happier. Since we started partnering with JetPay just over a year ago as a customer, we have found that their ability to innovate quickly while providing unmatched uptime has allowed us to grow our business even more rapidly.” Mr. Valentino continued, “This merger establishes one complete and integrated end-to-end solution for our customers to process bills and payments through the combination of CSI’s highly configurable payment gateway with JetPay’s real-time processing of credit and debit cards. We are excited to be part of the JetPay team.”
The Board of Directors of both companies have approved the transaction. The merger will be funded primarily through the issuance of shares of JetPay common stock and the assumption of debt. The transaction is expected to close in the second quarter of 2016 and is subject to customary regulatory and other closing conditions being satisfied, including approval by JetPay’s stockholders of the issuance of the JetPay shares in connection with the merger. The merger is estimated to be immediately accretive to JetPay stockholders.
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, human capital management and other financial transactions. JetPay provides a single vendor solution for payment services, debit and credit card processing, ACH services, payroll and human capital management needs for 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 CollectorSolutions, Inc.
Since CSI’s inception in 1999, its goal has been to provide multiple methods of payment, collection, billing, and data movement with unsurpassed protection of data
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