Navigation Capital Partners has acquired prepaid and debit solutions provider Prepaid Solutions USA from West Suburban Bank. No financial terms were disclosed. SunTrust Robinson Humphrey advised Navigation on the deal.
Navigation Capital Partners (NCP), an Atlanta-based middle market private equity firm, announced that it has acquired the assets and associated liabilities of Prepaid Solutions USA via newly-formed entity Prepaid Solutions, Inc. (PPS). Prepaid Solutions USA was a division of West Suburban Bank (WSB), a Chicago area-based community bank and wholly-owned subsidiary of West Suburban Bancorp, Inc. WSB’s Prepaid Solutions USA division was founded in 2001.
PPS is a payments company offering comprehensive prepaid/debit solutions for corporate America, self-banked and under-banked consumers. Solutions include payroll, general-purpose reloadable, performance, incentive, reward and gift. NCP has appointed Ken Goins and Eric Ohlhausen as the new CEO and CFO of PPS, respectively. Dan Grotto, the head of WSB’s Prepaid Solutions USA division prior to the transaction, will serve as president of PPS.
NCP partnered with Goins and Ohlhausen through the firm’s Executive-in-Residence program to source the opportunity. NCP’s Executive-in-Residence program is the firm’s approach of identifying experienced leadership within an industry attractive for investment, and then searching for the right company to acquire as a team. The transaction also leverages NCP Operating Partner O.G. Greene’s more than 20 years of payments industry experience including Skylight Financial, Inc., National Data Corporation and First Financial Management.
“With Goins, Grotto, Ohlhausen and the PPS management team, NCP is backing experienced leadership to take advantage of attractive opportunities in the rapidly-growing payments industry,” said Larry Mock, managing partner of NCP. “Such an investment is representative of NCP’s continued, proactive strategy and the team dynamic behind our Executive-in-Residence initiatives.” Mock and Greene, as well as NCP Partner David Panton and Vice President Zuri Briscoe, will join the PPS board of directors.
Prepaid/debit products benefit companies by reducing costs, improving security and strengthening customer loyalty. In addition, prepaid products offer consumers convenient, cost-effective access to the financial mainstream when receiving compensation, making purchases and paying bills.
“The payments industry has grown rapidly over the last five years, and strong demand is expected to continue,” said Goins. “With the partnership and involvement of NCP, PPS is poised to capitalize on opportunities to expand current relationships, enhance product offerings and enter new markets.” PPS currently has two locations in Darien, Ill., and Hartland, Wis.
“Market conditions and regulatory changes continue to shrink access to credit and contribute to the increased acceptance of alternative banking solutions such as the use of prepaid/debit solutions in place of checks or cash,” said Panton. “NCP looks forward to a close collaboration with PPS as we work together to grow the business amid the current landscape.”
SunTrust Robinson Humphrey served as financial advisor to NCP. DLA Piper LLP, Troutman Sanders LLP and Barack Ferrazzano Kirschbaum & Nagelberg LLP served as legal counsel for NCP, PPS management, and WSB, respectively.
About Navigation Capital Partners
Navigation Capital Partners (NCP) is an Atlanta-based private equity firm that makes growth and buyout investments in middle market niche manufacturing, distribution and business services companies across the United States. The managers of NCP formerly founded and managed Mellon Ventures, the private equity investment partnership of Mellon Financial Corporation. With the backing of Goldman Sachs Vintage Funds, NCP acquired the private equity portfolio of Mellon Ventures in December 2006. NCP currently manages approximately $375 million of invested and committed capital. For more information, visit www.navigationcapital.com.
About Prepaid Solutions, Inc.
PPS is a payments company offering comprehensive prepaid/debit solutions for corporate America, self-banked and under-banked consumers. Solutions include payroll, general-purpose reloadable, performance, incentive, reward and gift. PPS also provides marketing, design, distribution, and fulfillment services in support of its products. The company’s consumer-based products are available for purchase in more than 2,000 retail stores and are re-loadable at multiple retail networks nationwide. PPS has two locations in Darien, Ill., and Hartland, Wis. Visit www.prepaidsolutions.com to learn more.