REPAY Announces Acquisition of Payix
Payix Acquisition Enhances REPAY’s Position in the Key Automotive Loan Repayment Vertical and Accelerates Expansion in the Buy Now, Pay Later “BNPL” Market
The Company Also Announces Upsizing of Revolver Capacity
Founded in 2016 and based in
“We are thrilled about the acquisition of Payix, a highly complementary business to REPAY,” said
REPAY acquired Payix on a cash-free, debt-free basis for up to
$95 millionpaid at closing
$20 millionmay become payable through an earnout, which is contingent on Payix’s performance in 2022
- Net leverage is expected to approximate 3.6x1 on a post-transaction basis and is expected to be below 3.0x by year end 2022
In 2022, Payix is expected to generate revenue of over
$15 million, with gross and adjusted EBITDA margins of approximately 65% and 40%, respectively
- On an organic basis, Payix top line and gross profit are growing substantially faster than the overall REPAY historical corporate average. Based on historical growth trends, Payix is expected to generate top line and gross profit growth in excess of 40% annually through 2023
- Further enhances REPAY’s position in the large and growing automotive vertical, and accelerates expansion into the attractive buy now, pay later (“BNPL”)space
- Payix has generated strong topline growth and has highly predictable and recurring transaction revenue
Complementary sales distribution model, driven by deep integrations with leading LMSand DMS platforms to accelerate new merchant acquisitions
- Payix’s platform serves 300,000+ underlying borrowers
- Proprietary software platform, offering a wide range of omni-channel borrower payment options including via mobile app, web, SMS, agent-assisted, and interactive voice response (“IVR”)
Payix helps lenders and loan servicers improve their ability to engage with borrowers and collect payments. Payix’s borrower-facing tools – with real-time loan management and dealer management system integrations – display client branding for quick borrower adoption and lasting utilization. Using Payix state-of-the-art technology, lenders and loan servicers can instantly communicate with borrowers across multiple channels and secure qualified promises, one-time and scheduled payments.
REPAY provides integrated payment processing solutions to verticals that have specific transaction processing needs. REPAY's proprietary, integrated payment technology platform reduces the complexity of electronic payments for merchants, while enhancing the overall experience for consumers and businesses.
This communication contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements about future financial and operating results, REPAY’s and Payix’s plans, objectives, expectations and intentions with respect to future operations, products and services; and other statements identified by words such as “is expected to,” “is anticipated,” “estimated,” “believe,” “projection” or words of similar meaning. These forward-looking statements include: anticipated benefits from the Payix acquisition, future opportunities for REPAY and Payix, REPAY net leverage estimates and the level of Payix’s expected growth and financial contributions, including revenue, adjusted EBTIDA and gross profit growth. Such forward-looking statements are based upon the current beliefs and expectations of REPAY’s management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are difficult to predict and generally beyond our control.
In addition to factors disclosed in REPAY’s reports filed with the
Actual results, performance or achievements may differ materially, and potentially adversely, from any projections and forward-looking statements and the assumptions on which those forward-looking statements are based. There can be no assurance that the data contained herein is reflective of future performance to any degree. You are cautioned not to place undue reliance on forward-looking statements as a predictor of future performance. All information set forth herein speaks only as of the date hereof in the case of information about REPAY or the date of such information in the case of information from persons other than REPAY, and REPAY disclaims any intention or obligation to update any forward looking statements as a result of developments occurring after the date of this communication. Forecasts and estimates regarding REPAY’s industry and end markets are based on sources it believes to be reliable, however there can be no assurance these forecasts and estimates will prove accurate in whole or in part. Pro forma, projected and estimated numbers are used for illustrative purpose only, are not forecasts and may not reflect actual results.
1 As of 11/30/21. Based on pro forma metrics for Payix, assuming full twelve months contribution of recent acquisitions.
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