Payment technology provider Vantiv announced on Monday a $1.65 billion deal to acquire Colorado-based Mercury Payment Systems as part of the company’s strategy to expand growth in the integrated payments space.
“The emergence of integrated payment technology at the point-of-sale delivers a differentiated merchant experience and creates a highly-efficient, cloud-based delivery model for customer acquisition and retention,” Vantiv President and CEO Charles Drucker said. “By combining Mercury’s distribution network and innovative solutions with Vantiv’s technology platform and products, we are developing a payments eco-system that allows us to serve these clients in new and exciting ways. Bringing the companies together will dramatically enhance our distribution and technology capabilities to serve a number of large and growing industry verticals.”
Mercury’s network includes more than 3,000 point-of-sale software developers that serve small and medium-sized businesses across North America.
Last year, the company posted $237 million in net revenue—a 17 percent year-over-year increase. Vantiv said Mercury’s growth will add one to two percentage points to its annual net revenue growth.
“Vantiv and Mercury are aligned in our desire to create integrated software solutions that fulfill the specialized needs of merchants,” Mercury CEO Matt Taylor said. “Software developers and dealers are helping to lead the way for the future of payments, and combining with Vantiv puts us in a strong competitive position to jointly offer a broader set of value-added products and services to our partners and merchants.”
The deal is subject to regulatory approval and is expected to close by the end of the second quarter.