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Back to NewsThe consolidated company will have more than 1,000 employees and independent payment professionals led by Oberman, who will serve as the chief executive officer of the combined company. Adam Bloomston, currently chief executive for Payscape and NXGEN, will serve as president of the combined company. The remainder of the executive team will consist of a combination of leaders from each of the four principle merger partners.
“We’re building something unique, impressive and meaningful. Adding Payroc to the mix is a formative next step in our strategic efforts,” said Bloomston. “We are extremely excited about the combination. We are pleased to have Jim lead us into the future given his tremendous experience and reputation in payments,” added Bloomston.
The merger was sponsored by Parthenon Capital, a growth-oriented private equity firm that focuses on building franchise assets in the financial services and health care sectors. “We are proud that after two very productive years of effort on this strategy, we’ve brought together four complimentary companies and executive teams. The result is a foundational payments industry powerhouse with tremendous opportunity,” commented Co-Chief Executive Officer Brian Golson at Parthenon Capital. Zach Sadek, a partner with Parthenon Capital remarked, “Since this initiative began with our partnership with Tom Nitopi and the NXGEN team, we have been focused on bringing together exceptional businesses with powerful technology-driven solutions that bring value to their customers and business partners. Payroc and BluePay Canada are perfect complements to this strategy. Both enhance the company’s global presence and expand capabilities in the attractive payment facilitation and business-to-business payments markets.”
The merger is subject to satisfaction of customary closing conditions. Keefe, Bruyette & Woods (KBW), a Stifel company, acted as financial advisor for Payroc in connection with this transaction. Parthenon Capital received advice from Boston-based Estabrook Advisors and Kirkland & Ellis LLP. Financial terms of the private transaction were not disclosed.
About the New Payroc
Payroc, the new combined enterprise, will maintain significant operational presence in Chicagoland, Atlanta, Toronto, Whitefish, Montana and Salt Lake City. The company is a high-growth American, Canadian and international merchant acquirer, processor and payment facilitator powerhouse operating in 46 countries, processing $23 billion in annual charge volume for more than 55,000 merchants. Payroc offers best-in-class sales enablement and merchant processing technology on a global basis, delivering proprietary, innovative and full-service merchant acquiring solutions together with key card brand network payment sponsorship registrations. Payroc LLC, together with its wholly-owned affiliate Payroc Processing Systems, LLC, is a registered Visa third party processor (TPP), Mastercard third party servicer (TPSV), payment facilitator (payfac) and encryption support organization (ESO) for Fifth Third Bank, an Ohio-chartered bank, Cincinnati, Ohio (“Fifth Third”). Payroc LLC is a registered independent sales organization (ISO/MSP) for Fifth Third and Wells Fargo Bank, N.A., Concord, California (“Wells”). Payscape is also a registered ISO/MSP for Fifth Third. NXGEN is an Elavon payments partner and registered as an ISO/MSP of Elavon, Inc., Georgia, a wholly owned subsidiary of US Bank Minneapolis. The company’s Canadian business unit is a registered ISO/MSP of Wells and Peoples Trust Company, Vancouver, Canada. For more information, please visit payroc.com or telephone 844-PAYROC-4.
About Parthenon Capital
Parthenon Capital is a leading mid-market private equity firm with offices in Boston, San Francisco and Austin. Parthenon utilizes niche industry expertise and a deep execution team to invest in growth companies in service and technology industries. Parthenon seeks to be an active and aligned partner to management, either through recapitalization transactions or by backing new executives. Parthenon has expertise in financial and insurance services, healthcare and business services, but seeks any service, technology or delivery business with a strong value proposition and proprietary know-how. For more information, please visit parthenoncapitalpartners.com.