Financial services and healthcare-focused private equity firm Flexpoint Ford is to invest up to $40m in Nasdaq-listed payment services company JetPay through the purchase of Series A convertible preferred stock.
This investment will be used to retire up to $16m of outstanding debt with the remainder available to invest in the company’s growth
Bipin Shah, chairman and CEO, JetPay, said, “It is our plan to become the vendor of choice for businesses in need of the most advanced technologies in payment, processing, payroll, and card services. JetPay also envisions benefiting employees of our customers with payroll services without risk or unnecessary expense. The proposed investment by Flexpoint, a successful and highly-regarded investment firm, provides us with the ability to quickly carry out our plan while providing fast, secure, and safe payments solutions for businesses of all sizes.” He continued: “Flexpoint’s confidence in us validates what we have already created and gives us an opportunity to accelerate our growth.”
Don Edwards, managing principal of Flexpoint Ford, added, “We are excited to partner with Bipin Shah. We have a longstanding relationship with Bipin and his team and have had success together in the past. We expect that JetPay’s existing core business coupled with management’s strong capabilities will deliver results for our investors.”
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