Investment accelerates PayFacto's growth strategy and includes participation from BMO Capital Partners.
MONTREAL and NEW YORK CITY, Aug. 5, 2021 /PRNewswire/ - PayFacto Payments Inc. ("PayFacto" or "the Company"), a leading provider of payment solutions and point-of-sale technologies, is pleased to announce an equity investment of up to C$150 million, to accelerate PayFacto's growth, led by private equity firm Flexpoint Ford with participation from BMO Capital Partners.
PayFacto, one of Canada's largest non-bank payment processors, is a leading provider of high-quality, fully integrated payment processing technologies and hospitality technology solutions for over 30,000 merchants in Canada, the U.S., and the UK. The growth equity investment will be used to finance PayFacto's significant expansion in the U.S. market, leveraging its acquiring bank partnership with Community Federal Savings Bank ("CFSB"). The investment follows PayFacto's acquisition of the Maitre'D and Veloce point-of-sale ("POS") software systems and will accelerate the Company's growth strategy including further enhancing PayFacto's suite of payment products, launching PayFacto's new cloud-based point-of-sale system, and funding future acquisitions.
"With its impressive track record and experience in the financial services sector, Flexpoint Ford is the ideal partner to help drive PayFacto's growth," said Martin Leroux, President and CEO of PayFacto. "We're incredibly proud of everything we've accomplished as a Canadian company; now we've reached an exciting inflection point and our new financial partners will help take us to the next level in our company's evolution. Flexpoint Ford not only has a deep knowledge of the payments sector, but they also share our values and vision for success. We're pleased that BMO, which debt financed our two POS acquisitions, will continue to be part of our growth story, now as an equity investor."
Arjun Thimmaya, Managing Director at Flexpoint Ford, commented, "We're excited about PayFacto's growth potential and the opportunity to further expand its presence in the U.S. by combining payment and POS technologies. PayFacto is a true Canadian success story, and we're eager to help replicate that success in the U.S. We were particularly impressed with the depth of PayFacto's management team—they have the experience and capabilities to make their vision a reality."
"We look forward to working with management to accelerate PayFacto's strong organic growth and remain focused on collaborating with the team to further the Company's inorganic growth strategy in both payments and POS software systems," added Vilas Nair, Principal at Flexpoint Ford. "Given PayFacto's history of acquiring and integrating companies in both markets, we believe they are well-positioned as an acquiror of choice."
Alex Baniczky, Head, BMO Capital Partners, added, "Bank of Montreal has enjoyed a longstanding partnership with PayFacto as a lender, and we're pleased to participate in the PayFacto story as a shareholder and to work with Flexpoint Ford. We see a lot of upside potential with PayFacto as they grow their presence in the U.S."
RBC Capital Markets served as the exclusive financial advisor and BCF served as legal counsel to PayFacto. Stikeman Elliott LLP and Kirkland & Ellis LLP served as legal counsel to Flexpoint Ford. Oliver Wyman acted as a strategic advisor to Flexpoint Ford. Miller Thomson LLP served as legal counsel to BMO Capital Partners.
About PayFacto Headquartered in Montreal with operations in Canada, the United States, and the United Kingdom, PayFacto is a leader in payment solutions and hospitality technology, including its new VelPay, an all-in-one integrated payment and POS solution. Recognized for its expertise, agility, and execution, PayFacto enables merchants of all shapes and sizes to take control of their electronic transactions. With its own proprietary payment gateway and SaaS point-of-sale technology, PayFacto offers a unique suite of integrated payment and POS solutions supported locally through its extensive network of hundreds of distributors and resellers. For more information, visit payfacto.com.
About Flexpoint Ford Flexpoint Ford is a US-based private equity investment firm that has raised more than $5 billion in capital and specializes in privately negotiated investments in the financial services and healthcare industries. Since the firm's formation in 2005, Flexpoint Ford has completed investments in more than 40 companies across a broad range of investment sizes, structures, and asset classes. Flexpoint Ford is headquartered in Chicago, Illinois, with additional offices in New York, New York. For more information about Flexpoint Ford, please visit flexpointford.com.