Parthenon Capital backed the merger of Nxgen International and Payscape, a deal creating a payments company that processes more than $10 billion annually for over 20,000 merchants.
Parthenon has a majority of the combined Nxgen and Payscape, a source said. Principals of both companies are rolling over their equity, the source said.
Terms of the transaction, which has closed, weren’t disclosed. The combined Nxgen-Payscape will operate in 75 countries.
Adam Bloomston, Payscape co-founder and chief executive, is leading the combined company as CEO. Jeremy Wing, Payscape’s chairman and co-founder, and Tom Nitopi, Nxgen’s co-founder and CEO, are co-vice chairmen.
Nxgen is the Whitefish, Montana, service provider for more than 13,000 merchants. Payscape, Atlanta, provides payment processing to more than 11,000 small and medium-sized vendors in retail, professional services and hospitality.
The two companies had talked about a merger for years, according to Pymnts.com.
The idea behind the transaction is to merge PayScape’s registration software, along with its invoicing/billing and direct sales force, with Nxgen’s independent-agent and international-sales channels, the person said.
Nxgen was believed to be up for sale in 2018. Parthenon acquired it and merged Nxgen with Payscape, which was on the block earlier this year.
For Parthenon, the Nxgen-Payscape merger represents the private equity firm’s bid to create another scaled payments acquirer. In 2018, Parthenon sold Cayan, a global credit card processor, to TSYS for $1.05 billion. Parthenon made 15x its money, Buyouts reported.
Founded in 1998, Parthenon targets middle-market companies in financial, healthcare and business services. The Boston PE firm closed its fifth flagship on $1 billion in 2016.
Jamie Hamilton of SunTrust Robinson Humphrey advised Payscape, while Brad Resweber of Troutman Sanders provided legal advice.
Kirkland & Ellis and Morris, Manning & Martin were attorneys for Nxgen/Parthenon.
Correction: A previous version of this report misspelled Payscape’s name in the headline. The report has been updated.
Action Item: Contact Brian Golson, Parthenon’s co-CEO and managing partner, at +1 512-813-4960.