iPayment Acquires Portfolio of Merchant Contracts from First Data
iPayment has announced that it has acquired a merchant portfolio of approximately 25,000 small merchants from First Data Corp. The portfolio represents approximately $9 to $10 billion in annual charge volume and was acquired for $130 million in cash.
Greg Daily, chairman and chief executive officer of iPayment, commented, "We are pleased to announce another successful step in iPayment's profitable growth strategy. iPayment will obtain a significant portfolio of small merchant accounts and gain access to a marketing channel of associations and credit unions that will continue to generate new merchant accounts not available through our existing relationships. We remain confident in our ability to execute our growth strategy in the fragmented small merchant marketplace."
Scott Betts, president of First Data Enterprise Payments, added "This sale is consistent with our merchant strategy to maximize our enterprise sales approach of providing multiple products and services through the right strategic relationships that are beneficial to our channels, merchants and shareholders. This expanded arrangement allows us to continue growing in the merchant business while continuing to provide our processing service to the merchants in this portfolio."
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