Arsenal Capital Partners’ FrontStream Payments Acquires GiftWorks

FrontStream Payments, a provider of payment and donor products backed by Arsenal Capital Partners, said Monday that it has acquired GiftWorks. No financial terms were disclosed. Headquartered in Lancaster, Penn., GiftWorks is a provider of fundraising management tools and services for charities.

PRESS RELEASE

Reston, VA – August 19, 2013 – FrontStream Payments, Inc., has announced the acquisition of Pennsylvania-based GiftWorks. FrontStream, through its wholly owned subsidiary FirstGiving, provides nonprofit organizations with a comprehensive peer-to-peer fundraising platform that gives users access to donation tracking capabilities, social media integrations and robust data management tools.
For the past decade, GiftWorks’ focus has been giving nonprofits the solutions and tools needed to accomplish their mission. Launched in 2004, GiftWorks has gathered deep knowledge of donor management solutions and established itself as an invaluable resource to nonprofits, nonprofit associations and a partner to other enterprise-level software providers serving the nonprofit market.
The GiftWorks platform is a hybrid solution that is currently offered in a web-integrated desktop version or a hosted version and includes extensive donor and contribution management, event and volunteer management, reporting, and data analytics tools. The addition of the GiftWorks CRM solution to the FrontStream/FirstGiving product line significantly expands the capabilities of FrontStream and FirstGiving’s current nonprofit client base. FrontStream and GiftWorks’ combined development resources have also created a seamless integration that enables GiftWorks’ current clients to activate key donation processing features that, to date, were only available directly through the FirstGiving platform.
“This acquisition makes sense for us because the FrontStream and GiftWorks offerings each include key product capabilities that complement each other well and, together, will provide a much more comprehensive product offering to our nonprofit clientele,” states Nina Vellayan, President and Chief Executive Officer of FrontStream. “This is truly the marriage of two of the best brands in the market.”
As a combined entity, GiftWorks and FrontStream will now have five primary office locations and will collectively serve over 10,000 nonprofit organizations across the country. While FrontStream will continue to maintain the GiftWorks brand, future plans to further integrate the two platforms, improve the scalability of the GiftWorks product and develop more partner integrations will make “a significant impact on the mid-tier market in that it will give Tier 2 and Tier 3 nonprofits the option to take advantage of a ‘one-stop-shop’ approach to fulfilling critical donation and fundraising needs,” said Steve Fafel, GiftWorks’ Chief Executive Officer. “This move goes beyond expanding our market share; we are enhancing our ability to contribute to the advancement of meaningful causes and, to that end, we will continue to find new and creative ways to serve nonprofits and the donors that support them.”
FrontStream is backed by a group of investors led by Arsenal Capital Partners, a leading New York-based private equity firm with over $1.6 billion of committed capital under management.
To learn more about FrontStream Payments’ products and services, go to: http://frontstreampayments.com/Productsservices.aspx.
For more information about GiftWorks’ donor management platform, visit the company’s website at: www.GiftWorksconnect.com.
For more information about Arsenal Capital Partners, go to: http://www.arsenalcapital.com/.
About FrontStream Payments
FrontStream Payments is a leading merchant solutions provider of integrated payment products. The company has wellestablished client relationships in virtually all business sectors and a strong partnership presence in the B2B, Nonprofit, Education, Automotive, Energy, and Hospitality industries. Offerings include turnkey solutions that enable clients to increase revenues through POS, mobile and web acceptance of ACH eChecks and credit/debit cards. All accounts and payment platform, launched in 2011 as the first, singlesource payment processing, data management and integrated ERP system of its kind. The company is headquartered in products are powered by FrontStream’s proprietary fasttransact Reston, VA and has offices in Brentwood, TN, Lacey, WA, and Boston, MA.
About GiftWorks
GiftWorks is a leading provider of fundraising management tools and services for charities in the United States, Canada, and around the world. The GiftWorks product line includes software and solutions that help nonprofits build relationships with donors, solicit and track contributions, facilitate communication, manage volunteers and events, and produce analytic and compliance reports. GiftWorks has been serving nonprofit sector since 2004 is headquartered in Lancaster, PA.