Pipeline Data Acquires PayPassage
May 11, 2009 9:35:00 AM
Copyright Business Wire 2009
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View Additional ProfilesALPHARETTA, Ga.--(BUSINESS WIRE)-- Pipeline Data Inc. (OTCBB:PPDA ), a leading provider of merchant payment processing services, today announced that it has completed the acquisition of PayPassage, Inc. PayPassage is a full service credit card processing solution offered to U.S. merchants in the retail, wholesale, mail/phone order, commercial and e-commerce space. The former owners of PayPassage originally owned Paynet Systems, Inc., another successful full service credit card processing solution to the same merchant markets. Pipeline acquired Paynet in 2006. The former shareholders of PayPassage have formed a new entity that has entered into an exclusive Processing Service Agreement with Pipeline for the provision of merchant processing services.
"The acquisition of PayPassage demonstrates our commitment to our corporate strategy to expand not only through organic growth, but also through the acquisition of strategic relationships from compatible businesses. Pipeline has combined its comprehensive merchant processing solutions with PayPassage's account generation capabilities to further its goal of increasing market share in the online and retail merchant space," said Randy McCoy, the newly appointed Chief Executive Officer of Pipeline.
In February 2009, McCoy joined Pipeline as its CEO when the company restructured its financing obligations and issued a $15 million preferred stock instrument to Pipeline Holdings, Inc., as part of the ComVest Group's capital funding for growth initiatives. "The PayPassage transaction is one example of the kinds of deployment made possible by the ComVest capital infusion. The acquisition enables Pipeline to effectively expand its sales capabilities through the creation of strategic relationships with high-quality ISOs," stated McCoy. "Pipeline intends to continue to deploy its capital to increase market share during these tumultuous economic times."
Jack Chevalier, former president of PayPassage, stated, "This transaction completes another milestone in our relationship with Pipeline. The 2006 PayNet merger was a great success for all parties and created a starting point for us to build another large merchant portfolio company in PayPassage. We are excited about this merger and invigorated to build yet another successful multi-market merchant portfolio under our exclusive processing agreement with Pipeline."
About Pipeline:
Pipeline provides the general merchant community an integrated suite of merchant payment processing services and related software enabling products. The Company delivers credit and debit card-based payments processing solutions to small and mid-sized merchants that operate in physical "brick and mortar" business environments or over the internet, and in settings that require wired as well as wireless mobile payment solutions.
The information provided for in this announcement may contain forward-looking statements pursuant to the "safe-harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve risk and uncertainties that could affect performance and results of the Company in the future and, accordingly, such performance and results may materially differ from those expressed or implied in any forward-looking statements made by or on behalf of the Company. These risks and uncertainties include, but are not limited to those relating to the Company's growth strategy, customer concentration, outstanding indebtedness, seasonality, expansion and other activities of competitors, changes in federal or state laws and the administration of such laws, protection of the securities markets and other risks detailed in the Company's filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date the statement was made. Statements made in this Press Release that are not historical facts are forward-looking statements that are subject to the "safe harbor" created by the Private Securities Litigation Reform Act of 1995. The Company's actual results could differ significantly from those discussed and/or implied herein.
Source: Pipeline Data Inc.
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Pipeline Data Inc.
Randy McCoy
678-867-6010
CEO
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