ATLANTA, Sept. 21, 2020 (GLOBE NEWSWIRE) — Paya, a leading provider of integrated payment and commerce solutions, has announced that it has signed a definitive agreement to acquire The Payment Group. TPG provides integrated payment solutions to more than 600 utility and municipal government clients, linking all payments with their existing accounting and business management software. This marks Paya’s second acquisition in the government and utilities integrated payments space. Paya is a portfolio company of GTCR, a leading private equity firm. TPG is a portfolio company of Thompson Street Capital Partners.
Paya will invest in TPG’s sales efforts, supplement TPG’s technology offerings, and broaden marketing efforts to increase the adoption of electronic payments among TPG’s current customer base. In addition, Paya will integrate TPG’s online billing and software applications into Paya Connect, its end-to-end payments platform. By adding TPG’s applications, Paya Connect will be able to enhance its suite of integration tools, as well as the commerce solutions it provides to Paya’s partners and their clients.
Since 2003, TPG has worked closely with municipalities to provide differentiated solutions that allow consumers to pay their court and utility bills digitally. TPG offers electronic bill presentment and payment solutions that are directly integrated into the workflow of the municipality’s core software, increasing electronic payment adoption, streamlining collection cycles, and reducing friction for the consumer to a roster of 600+ clients.
“TPG perfectly complements our already robust capabilities in the government and utilities sectors,” said Jeff Hack, CEO of Paya. “The acquisition will allow us to provide enhanced solutions to local governments and municipalities as they offer their residents the ability to make digital payments for services like utility and court bills.”
“This combination benefits TPG clients by offering them expanded services for their constituents,” said Ariel Kunar, CEO of TPG. “We are excited to leverage Paya’s extensive resources and reputation for excellent service to municipal and utilities clients.”
The acquisition continues Paya’s strategic approach to enhance Paya’s scale, expand into new verticals, add product capabilities and embed payments in vertical software. Paya previously acquired Stewardship Technology in late 2018 and First Billing Services in 2019, which expanded its growth and product offerings in the non-profit and government spaces, respectively.
“The deep expertise, technology, and proven success that the TPG team has achieved with government clients complements the work Paya has already undertaken to enable the highly flexible, vertically tailored, and integrated commerce solutions,” said KJ McConnell, Principal at GTCR. “The COVID-19 pandemic is accelerating the shift to digital payments, and TPG provides an affordable solution to smaller municipalities to enable citizens to pay their bills online.”
The transaction is expected to close in early October. The acquisition follows Paya’s announcement in August of its intent to merge with publicly-traded special-purpose acquisition company FinTech Acquisition Corp. III (FTAC). Upon the closing of the merger, which is expected to take place in Q4 2020, Paya will trade on the Nasdaq stock exchange under the ticker “PAYA.”
Paya is a leading provider of integrated payment and frictionless commerce solutions that help customers accept and make payments, expedite receipt of money, and increase operating efficiencies. The company processes over $30 billion of annual payment volume across credit/debit card, ACH, and check, making it a top 20 provider of payment processing in the US and #6 overall in e-Commerce. Paya serves more than 100,000 customers through over 2,000 key distribution partners focused on targeted, high growth verticals such as healthcare, education, non-profit, government, utilities, and other B2B goods and services. The business has built its foundation on offering robust integrations into front-end CRM and back-end accounting systems to enhance customer experience and workflow. Paya is headquartered in Atlanta, GA, with offices in Reston, VA, Fort Walton Beach, FL, Dayton, OH, and Mt. Vernon, OH.
About The Payment Group
The Payment Group, LLC (TPG), based in Dallas, Texas, serves the payment processing needs of more than 600 municipal courts and utilities across the country, offering software integrations with court case management systems and mobile device compatibility to accept payments for various court-related matters, including traffic citations, warrants, low degree misdemeanors, as well as utility payments. TPG provides cities with a completely automated payment system for receiving payments online and processing them instantly – saving time, cutting costs, and generating more revenue for its municipal clients while making it easier for citizens to pay remotely or via phone. Founded in 2003, TPG has differentiated itself based on its strong technology and commitment to customer service. For more information, visit https://thepaymentgroup.com/
Founded in 1980, GTCR is a leading private equity firm focused on investing in growth companies in the Financial Services & Technology, Healthcare, Technology, Media & Telecommunications, and Growth Business Services industries. The Chicago-based firm pioneered The Leaders Strategy™ – finding and partnering with management leaders in core domains to identify, acquire and build market-leading companies through transformational acquisitions and organic growth. Since its inception, GTCR has invested more than $18 billion in over 200 companies.
About Thompson Street Capital Partners
Thompson Street Capital Partners is a St. Louis-based private equity firm focused on investing in founder-led middle market businesses. The firm has acquired more than 150 companies in the Healthcare & Life Sciences Services, Software & Technology Services and Business Services & Engineered Products sectors and have managed more than $2.6 billion since being founded in 2000.