Flexpoint Ford has inked an agreement to invest up to $40 million in JetPay Corp. According to JetPay, the capital will be used for growth and to pay down debt. Based in Carrollton, Texas., JetPay Corp is a provider of payment solutions for businesses.
BERWYN, Pa.–(BUSINESS WIRE)–JetPay® Corporation ( NASDAQ: JTPY) announced today that Flexpoint Ford, a private equity firm focused on the financial services and healthcare sectors, signed a definitive agreement on August 22, 2013 to invest up to $40 million in the company through the purchase of Series A convertible preferred stock. This investment will be used to retire up to $16 million of currently outstanding debt with the remainder available to invest in the company’s growth. The transaction is expected to close in the next 45 days.
Bipin C. Shah, Chairman and Chief Executive Officer of JetPay Corporation, explains: “It is our plan to become the vendor of choice for businesses in need of the most advanced technologies in payment, processing, payroll, and card services. JetPay also envisions benefiting employees of our customers with payroll services without risk or unnecessary expense. The proposed investment by Flexpoint, a successful and highly-regarded investment firm, provides us with the ability to quickly carry out our plan while providing fast, secure, and safe payments solutions for businesses of all sizes.” He continued: “Flexpoint’s confidence in us validates what we have already created and gives us an opportunity to accelerate our growth.”
Don Edwards, Managing Principal of Flexpoint Ford, said: “We are excited to partner with Bipin Shah. We have a longstanding relationship with Bipin and his team and have had success together in the past.” He added: “We expect that JetPay’s existing core business coupled with management’s strong capabilities will deliver results for our investors.”
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.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.