Cash Cycle Solutions Inc., a Charlotte, N.C.-based provider of outsourced transaction processing services, has acquired San Diego-based Sea-Net Holding Inc. The deal was partially financed by $15 millionin debt from BIA Digital Partners and RBC Bank.
BIA Digital Partners II LP (“BIA”), a private investment firm focusing on mid- to later-stage companies, and RBC Bank (USA), recently announced a financing arrangement for Charlotte, NC-based Cash Cycle Solutions, Inc. (“Cash Cycle Solutions” or the “Company”), allowing the Company to acquire San Diego-basedSea-Net Holding, Inc.(d/b/a ZDI), completing a meaningful shareholder redemption and providing working capital for growth. BIA invested $7 million of subordinated debt, and RBC Bank, through its Knowledge Based Industries Group, provided $7.5 million of senior term and revolving debt.
Cash Cycle Solutions is a leading provider of outsourced transaction processing services based in Charlotte, N.C. Cash Cycle Solutions was formed in 2006, when its predecessor entity, Total Billings, Inc., acquired Utility Business Services, Inc., combining over 70 years of industry experience and creating a comprehensive suite of outsourced transaction processing solutions.
“We at Cash Cycle Solutions are delighted to have made this acquisition with the help of RBC and BIA,” said Chris Whitfield, CEO of the Company. “RBC Bank has been a valued partner to Cash Cycle Solutions for years and really stepped up at this exciting time in our evolution. We have really enjoyed getting to know the BIA team during this process. We found them to be quick studies, flexible and with a great focus on getting this important transaction closed.”
With ZDI, the Company now serves hundreds of customers coast to coast from its four locations – Charlotte and Durham, N.C.; San Diego, Calif.; and Union, N.J. In delivering its flexible suite of traditional processing and contemporary digital solutions, Cash Cycle Solutions combines its proprietary technology with state-of-the-art operations centers to support every client’s entire cash cycle. From rate management, usage input and invoice calculation, to statement rendering and postal optimization, postal processing and electronic delivery, document archival and retrieval, and finally, to remittance processing and intelligent data analysis and tracking, the technology opens a portal of visibility into the daily activities of the cash cycle that did not exist prior to its development.
Scott Chappell, Principal at BIA, stated, “BIA has invested in a number of business services segments. We find Cash Cycle Solutions and ZDI to have a loyal and growing customer base, and we believe the long-term trend of payment processing moving from paper to digital will enable the combined Company to gain even more share.”
“The acquisition of ZDI will create significant strategic value for Cash Cycle Solutions, and we were pleased to play a crucial role as the senior lender in this transaction,” said Lesley Wilson, relationship manager with RBC Bank’s Knowledge Based Industries Group. “RBC values its longstanding relationship with Cash Cycle Solutions and remains a supportive financial partner to the Company.”
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About Cash Cycle Solutions, Inc
Cash Cycle Solutions, Inc., (CCS) is a leading provider of outsourced transaction processing services based in Charlotte, NC, serving hundreds of customers coast to coast. In delivering its flexible suite of traditional bill and remittance processing and digital billing and cash cycle management solutions, CCS combines its proprietary technology with state-of-the-art operations centers to support every client’s entire cash cycle. CCS currently provides outsourcing to a broad spectrum of industries including, but certainly not limited to, utilities, government services, education, financial services, insurance, telecommunications and healthcare. To learn more about Cash Cycle Solutions, visit www.TotalCCS.com.
About BIA Digital Partners
BIA Digital Partners is a private investment firm, managing approximately $280 million. Financing is available for acquisitions, organic growth, recapitalizations and leveraged/management buyouts among other purposes. BIA Digital Partners maintains a focus on mid- to later-stage companies operating in the media and entertainment, telecommunications, information, education, business and consumer services industries. Investments generally range from $5 to $15 million and are typically in the form of subordinated debt with warrants or preferred equity. For more information, visit www.biadp.com.
About RBC Bank
Founded RBC Bank (USA), headquartered in Raleigh, N.C., offers a wide range of financial services and advice to individuals, businesses and public institutions throughout the Southeast. RBC Bank’s network includes more than 420 full-service banking centers in six states (Alabama, Florida, Georgia, North Carolina, South Carolina and Virginia), an extensive ATM network and telephone and online banking. RBC Bank is the 38th largest U.S. bank by consolidated assets, according to SNL Financial’s List of the Nation’s 50 Largest Banks, September 2, 2009. RBC Bank is a wholly-owned subsidiary of Royal Bank of Canada (RBC) (RY on the TSX and NYSE), Canada’s largest and most stable bank as measured by assets and market capitalization. In August 2009, Global Finance Magazine ranked RBC as the safest bank in the Western Hemisphere. RBC is also one of the world’s financial, social and environmental corporate leaders, having appeared on the Dow Jones Sustainability World Index every year since its creation in 1999. RBC Bank’s Knowledge Based Industries Group is a specialty banking team that specializes in working with technology and life science companies. Additional information about RBC Bank may be found at www.rbcbankusa.com.