iPayment Acquires Portfolio of Merchant Contracts from First Data

Tuesday 28 December 2004 19:01 CET | News

iPayment has completed the acquisition of a portfolio of merchant contracts from First Datas Merchant Services subsidiary for a sale price of $130 million in cash.

The acquisition will become effective on December 31, 2004. iPayment has expanded its revolving credit facility from $80 million to $180 million from Bank of America and JPMorgan Chase Bank to finance the purchase. The portfolio has approximately 25,000 small merchant locations representing approximately $9 billion - $10 billion in annual charge volume. The transaction strengthens an existing strategic relationship between iPayment and First Data Merchant Services. The two companies will work together towards creating a preferred provider program across iPayments agent network, which contributes to a growing base of more than 100,000 customers. It is anticipated that the preferred provider program will include First Data Gift Card Services, TeleCheck Services, debit payments and terminal deployment, service and leasing solutions. iPayment is currently a customer of First Data for processing and terminal deployment services.

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Categories: Payments & Commerce | Payments General
Countries: World
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