REPAY, which works in vertically-integrated payment solutions, will be acquiring BillingTree for $503 million, according to a press release.
In terms of the transaction, the price tag will include $275 million from REPAY’s balance sheet in cash, and $228 million in newly issued Class A common stock, the release stated.
REPAY CEO John Morris said in the release that he looks forward “to further expanding our position in healthcare, credit unions and accounts receivable management with the help of BillingTree’s team and strong platform capabilities.”
The acquisition will improve REPAY’s scale and client diversity, according to the release.
“BillingTree satisfies all of our acquisition investment criteria, including a large addressable market opportunity that is amid a shift away from legacy payment methods and towards the technology-first, industry-specific payment mediums in which BillingTree specializes,” Morris said in the release. “Additionally, BillingTree has strong recurring revenue streams, high customer retention, approximately 50 unique [independent software vendor (ISV)] integrations, an attractive financial profile, and numerous opportunities for synergy realization. We are looking forward to welcoming BillingTree into the REPAY family and together pursuing many amazing growth opportunities ahead.”