Capstone Partners advised Payix, a loan repayment technology firm, on its sale to Repay Holdings Corporation (REPAY).
REPAY acquired Payix on a cash-free, debt-free basis for up to $115 million. $95 million was paid at closing and up to $20 million may become payable through an earnout, which is contingent upon Payix’s 2022 performance. Based on historical growth trends, Payix is expected to generate top-line and gross-profit growth in excess of 40% annually through 2023.
Capstone Partners provided our team with unparalleled Fintech and M&A experience that allowed our management team and shareholders to realize this significant transaction. The Capstone team provided expert advice all along the way, from the preparation work involved ahead of time, combined with being able to address obstacles along the way.
Founded in 2016 and based in Fort Worth, Texas, Payix is a leading omnichannel payment technology platform providing solutions that facilitate payments, data exchange, and communication to support customer service and collection efforts in loan repayment verticals. Payix’s software supports a wide range of payment options and modalities and integrates into loan management systems (LMS) and dealer management systems (DMS) by providing a SaaS approach to collections technology.
The acquisition will further enhance REPAY’s position in the automotive vertical and accelerate its expansion into the attractive buy now, pay later space. Payix also brings a complementary sales distribution model—driven by deep integrations with leading LMS and DMS platforms—to accelerate new merchant acquisitions and a proprietary software platform that offers a wide range of omnichannel borrower payment options including via mobile app, web, SMS, agent-assisted, and interactive voice response (IVR).
“Amid the ever-growing need for particular financial services industry segments to become more digitalized to increase customer engagement, Payix is at the forefront with its proprietary integrated loan payments technology platform. REPAY’s scale will help accelerate customer adoption for both companies,” commented David Francione, Managing Director and head of Capstone’s Fintech Investment Banking group.
REPAY provides integrated payment processing solutions to verticals that have specific transaction processing needs. REPAY’s proprietary, integrated payment technology platform reduces the complexity of electronic payments for merchants, while enhancing the overall experience for consumers and businesses.