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Repay Holdings Corporation (NASDAQ: RPAY), a leading provider of vertically integrated payment solutions, announced on Monday that it had acquired Fort Worth-based Payix for up to $115 million, including $95 million paid at closing.
The acquisition was financed with cash on hand and available revolver capacity. REPAY also announced the upsizing of its revolver capacity by $60 million, increasing its existing $125 million Revolving Credit Facility to $185 million.
Founded in 2016 by Chris Chestnut and Preston Cecil, Payix is a leading omni-channel 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.
Payix’s platform serves 300,000-plus underlying borrowers.
“We are thrilled about the acquisition of Payix, a highly complementary business to REPAY,” says John Morris, CEO of REPAY, in a statement. “With its robust and highly flexible technology platform, Payix creates a uniquely positive experience and adds value for both the lender and borrower. Payix also has a strong pipeline and product roadmap, positioning it well for 2022 and beyond. We look forward to welcoming the Payix team into the REPAY family.”
Up to $20 million may become payable through an earnout, which is contingent on Payix’s performance in 2022, a news release says. In 2022, Payix is expected to generate revenue of more than $15 million, with gross and adjusted EBITDA margins of approximately 65% and 40%, respectively. On an organic basis, Payix's top line and gross profit are growing substantially faster than the overall REPAY historical corporate average. Based on historical growth trends, Payix is expected to generate top line and gross profit growth in excess of 40% annually through 2023.