JetPay Corp said Tuesday that it has closed $10 million in funding from Flexpoint Ford. The transaction was made on October 11, 2013. The $10 million funding is part of a previously announced agreement with Flexpoint in which the firm agreed to invest up to $40 million into JetPay. Based in Carrollton, Texas., JetPay Corp is a provider of payment solutions for businesses.
BERWYN, Pa.–(BUSINESS WIRE)–JetPay® Corporation (“JetPay” or the “Company”) (NASDAQ:JTPY) announced the closing and receipt on Friday, October 11, 2013 of a $10 million investment from an affiliate of Flexpoint Ford, LLC (“Flexpoint”). The $10 million investment was made pursuant to the previously announced agreement with Flexpoint in which it agreed to invest up to $40 million into JetPay subject to the satisfaction of certain conditions. This initial investment was used to retire approximately $5.9 million of short-term notes with the remainder available for general corporate purposes. JetPay is a leading provider of vertically integrated payment solutions for businesses, including card acceptance, processing, payroll, payroll tax filing and card services. Flexpoint is a Chicago-based private equity investment firm with approximately $1 billion under management, specializing in financial services and healthcare industries.
“This infusion of capital to JetPay allows us to pay-off some short-term debt and will speed up our ability to further implement our strategic plan. JetPay aims to become the vendor of choice for businesses in need of the most advanced technologies in payment, processing, and card services.”
Bipin C. Shah, Chairman and Chief Executive Officer of JetPay, commented: “This infusion of capital to JetPay allows us to pay-off some short-term debt and will speed up our ability to further implement our strategic plan. JetPay aims to become the vendor of choice for businesses in need of the most advanced technologies in payment, processing, and card services.” Mr. Shah added, “I am very excited to once again be working with the partners of Flexpoint. They are knowledgeable about our industry and are supportive of our efforts to expand our business.”
Simultaneous with Flexpoint’s investment, Donald J. Edwards, Managing Principal of Flexpoint, was appointed to the Board of Directors of JetPay. Prior to founding Flexpoint, Mr. Edwards was a Principal of GTCR, a private equity firm. Mr. Edwards holds a B.S. degree in finance with highest honors from the University of Illinois and an M.B.A. from Harvard Business School.
Mr. Edwards stated: “We have worked with Bipin and his team over the years and have appreciated the returns they have brought to investors in our past enterprises. We look forward to working together again on this new investment.”
Also appointed to the Board of JetPay was Steven M. Michienzi. Mr. Michienzi is a Vice President of Flexpoint. Prior to joining Flexpoint as an Associate in 2009, Mr. Michienzi was an Analyst in the financial institutions investment banking group at Wachovia. Mr. Michienzi holds a B.S. degree in economics, Phi Beta Kappa and magna cum laude, from Duke University.
About JetPay Corporation
JetPay is a leading provider of vertically integrated solutions for businesses including card acceptance, processing, payroll, payroll tax filing and other financial transactions. JetPay provides a one vendor solution for payment services, debit and credit card processing, ACH services, and payroll and tax processing needs of businesses throughout the U.S. The company also offers low-cost payment choices for the employees of these businesses to replace costly alternatives. Its 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 recurring payments. Please visit www.jetpaycorp.com, www.jetpay.com, and www.jetpaypayroll.com for more information.
About Flexpoint Ford, LLC
Flexpoint Ford, LLC is a private equity firm dedicated to the financial services and healthcare sectors. Flexpoint Ford seeks to build relationships with executives and companies who look for Flexpoint Ford to be a value-added partner. Flexpoint Ford currently manages approximately $1 billion in committed capital on behalf of its limited partners. For more information about Flexpoint Ford, please visit www.flexpointford.com.