InterCept Completes Sale of Merchant Services Division

Tuesday 23 March 2004 10:12 CET | News

InterCept has closed today the sale of its merchant services division, InterCept Payment Solutions (IPS). The sale was consummated via two separate transactions -- one for the sale of Internet Billing Company, LLC (iBill) and another for the sale of the remainder of the IPS business.

The total sale price for both transactions was $53.5 million, which is $16.1 million more than the sale price stated in a letter of intent for the sale of IPS announced in February. Media Billing a 99%-owned subsidiary of Penthouse International, has purchased all of the outstanding member interests of iBill for $0.7 million in cash, a $0.8 million short-term note, and assumption of a $22.0 million working capital deficit. Pay By Touch purchased the remainder of the IPS business, including InterCepts wholly-owned subsidiary, InterCept Payment Solutions, Inc., and InterCepts merchant portfolio management business based in Tennessee. The sale price for that transaction was $30.5 million, composed of: $12.0 million cash; a $15.5 million note due in 180 days that is guaranteed by three Pay By Touch stockholders (the note will be discounted by $3.0 million to $9.5 million if Pay By Touch makes a $3.0 million prepayment in 60 days); a one year $2.5 million note that is convertible into Pay By Touch preferred stock currently valued at $2.5 million at InterCepts option; and shares of Pay By Touch preferred stock currently valued at $500,000. Both transactions closed on March 22.

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Categories: Payments & Commerce | Payments General
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