Universal Business Payment Solutions Acquisition Corporation (UBPS), a special purpose acquisition company, is entering into definitive agreements to acquire three business payment companies as part of its strategy to provide end-to-end transaction processing services to small businesses (view press release). The three companies include credit and debit card sales organisation, Electronic Merchant Systems (EMS), credit and debit card processor, Jet Pay LLC, and payroll processing and tax filing companies, AD Computer Corporation and Payroll Tax Filing Services.

UBPS will acquire the three companies in a transaction valued at an estimated USD179 million, of which USD104 million will be paid in cash, USD38 million in newly issued UBPS common stock, and the balance as future payments in cash and UBPS stock, with USD25 million of any future payment dependent on achieving certain targets. The cash share of the deal will be financed by a combination of a USD60 million credit facility and UBPS cash held in trust.

The business combination is subject to the approval of UBPS’s stockholders, as well as regulatory approval and other customary closing conditions. If these conditions are met the deal is expected to close early in Q4 of this year.