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Pipeline Data to Acquire Charge.com

Wednesday 16 March 2005 10:51 CET | News

Pipeline will purchase Charge.com for $7.5 million in cash, $3.5 million in the form of a promissory note, 5 million shares of Pipeline common stock and an additional 1 million shares of Pipeline common stock based on Charge.com fulfilling certain performance requirements.

The acquisition of Charge.com brings Pipeline Data to the milestone of servicing over 25,000 accounts. Further, the combined entity is expected to generate in excess of 1,000 new merchant accounts monthly. The transaction makes Pipeline Data one of the fastest growing companies in the industry. Capitalizing on highly optimized search engine placement, extensive affiliate channels and unique referral programs, Charge.com has developed a comprehensive Internet-based sales organization which produced over 500 new merchant accounts per month in 2004. For the year 2004, Charge.com reported $2.3 million in unaudited operating income. The company has experienced earnings growth in excess of 30% in each of the last three years. Pipeline also announced today that it has retained Maxim Group, a New York-based investment banking, securities and investment management firm to assist in the transaction. Pipeline has elected to report year-end earnings on or slightly before the March 31st due date rather than on an accelerated basis as previously stated.


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Categories: Payments & Commerce | Payments General
Countries: World
This article is part of category

Payments & Commerce