End-to-end transaction processing services to small businesses
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.
Whitepapers
Related reading
Central banks best suited to issue digital currencies
By Aaran Fronda A recent report by the Official Monetary and Financial Institutions Forum (OMFIF) said that central banks rather than private ... read more
Instant payments: innovations inbound for corporates
In 2020, instant payments look set to continue their current trajectory to become the biggest trend in payments. While these schemes already offer numerous benefits to corporates, leveraging innovations such as APIs and request to pay will go some way to unlocking their full potential, argues Michael Knetsch
Obstacles exist for banks to meet ECB’s instant payments goal
The cost of joining instant payment platforms will be one of many hurdles banks and payment services providers must overcome to meet ... read more
Banks must be aware of “biases” in data used to train ML models
Financial institutions need to be conscious of biases in the historical data that is being used to train machine learning (ML) models, ... read more
