JetPay signed an agreement last week to receive up to $40 million from Flexpoint Ford, a private equity firm that specializes in financial services and healthcare, through Flexpoint’s purchase of Series A convertible preferred stock.
“It is our plan to become the vendor of choice for businesses in need of the most advanced technologies in payment, processing, payroll, and card services,” JetPay Chairman and CEO Bipin C. Shah said. “JetPay also envisions benefiting employees of our customers with payroll services without risk or unnecessary expense. The proposed investment by Flexpoint, a successful and highly-regarded investment firm, provides us with the ability to quickly carry out our plan while providing fast, secure and safe payments solutions for businesses of all sizes.”
The investment will be used to retire up to $16 million of JetPay’s outstanding debt, while the remainder will go towards investment in company growth. The deal is expected to close by the end of September.
“We are excited to partner with Bipin Shah,” Flexpoint Ford Managing Principal Don Edwards said. “We have a longstanding relationship with Bipin and his team and have had success together in the past. We expect that JetPay’s existing core business, coupled with management’s strong capabilities, will deliver results for our investors.”
JetPay provides vertically integrated solutions, such as card acceptance, processing, payroll and payroll tax filing.