REPAY to acquire integrated payments provider BillingTree for $503 mn

By Pavithra R

Repay Holdings Corporation, a provider of a comprehensive suite of advanced and integrated payment technology products has announced signing a definitive agreement to acquire BillingTree for approximately $503 mn.

The acquisition will be financed with approximately $275 mn in cash from REPAY’s balance sheet and $228 mn in newly issued shares of REPAY Class A common stock to be issued to the seller. The transaction is subject to customary closing conditions and is expected to close by the end of the second quarter of 2021.

Founded in 2003, BillingTree is a leading provider of omnichannel, integrated payments solutions to the Healthcare, Credit Union, Accounts Receivable Management (ARM), and Energy industries. Through its technology-enabled suite of products and services, including various payment channels and reporting capabilities, BillingTree helps organizations get paid faster and more efficiently.

“We are thrilled to announce this acquisition, our largest to date, and look forward to further expanding our position in Healthcare, Credit Unions, and Accounts Receivable Management with the help of BillingTree’s team and strong platform capabilities. BillingTree satisfies all of our acquisition investment criteria, including a large addressable market opportunity that is amid a shift away from legacy payment methods and towards the technology-first, industry-specific payment mediums in which BillingTree specializes. Additionally, BillingTree has strong recurring revenue streams, high customer retention, approximately 50 unique ISV integrations, an attractive financial profile, and numerous opportunities for synergy realization. We are looking forward to welcoming BillingTree into the REPAY family and together pursuing many amazing growth opportunities ahead,” said John Morris, CEO of REPAY.

The acquisition is expected to expand REPAY’s footprint and provider-of-choice positioning in healthcare, Credit Unions, and Accounts Receivable management.

“BillingTree’s unique approach has always been to develop strategic alliances with service, software, and billing providers resulting in full integrations that create seamless, compliant, and innovative payment solutions. We believe that we are an ideal strategic partner for BillingTree, as we also go to market with a highly integrated, omni-channel approach. Together, we can capture more of the massive addressable market in payments and combine our incredible team members and technology to create simplified experiences for merchants across our collective, ever-expanding verticals,” continued Morris.

Founded in 2006, REPAY provides integrated payment processing solutions to verticals that have specific transaction processing needs. Last year, the firm acquired accounts payable automation provider, cPayPlus.