GTCR Completes Acquisition of Sage Payment Solutions

GTCR Completes Acquisition of Sage Payment Solutions

August 1, 2017

A Leading Provider of Payment Processing and Merchant Acquiring Solutions 

CHICAGO, IL – August 1, 2017

GTCR, a leading private equity firm, announced today that it has completed the acquisition of Sage Payment Solutions, Inc. ("SPS" or the "Company"), a leading provider of payment processing and merchant acquiring solutions. 

SPS, headquartered in Reston, Virginia, provides credit card, ACH, check, gift and loyalty card processing services to over 100,000 small and medium-sized businesses ("SMBs") in North America. GTCR is acquiring SPS from The Sage Group plc (LSE: SGE) ("Sage"), a global provider of integrated accounting, payroll and payment solutions headquartered in the UK. SPS's payment solutions integrate with merchants' business management software solutions and enable them to securely accept electronic payments through multiple channels, including card-present, e-Commerce and mobile. Through the Company's Sage Payment Solutions EFT subsidiary, SPS offers specialized ACH processing services to merchants, processors and other businesses. SPS serves a diversified base of SMB clients including healthcare providers, non-profit and faith-based organizations, and accounting software companies. The acquisition of SPS is a Leaders StrategyTM investment, and GTCR expects to supplement the existing management team with additional management leaders upon closing.

GTCR will work with the SPS management team to execute the carve-out from Sage and pursue growth initiatives and complementary acquisitions in the payments industry. In addition, GTCR and management intend to invest further in technology and offer innovative solutions to SPS customers and partners. To support this strategy, GTCR has committed up to $350 million of equity capital to the platform. 

Fully committed financing for the transaction has been arranged by GTCR and funded by Antares, Ares, Jefferies, Barclays and NXT. Latham & Watkins advised GTCR on the deal. Paul Hastings was regulatory and payments transactional counsel to GTCR. Jefferies served as financial advisor to GTCR.

Sage was advised on the transaction by Morris Manning & Martin as legal counsel and Raymond James & Associates as financial advisor. Sage also received financial and corporate brokerage advice from Citigroup Global Markets.

About GTCR

Founded in 1980, GTCR is a leading private equity firm focused on investing in growth companies in the Financial Services & Technology, Healthcare, Technology, Media & Telecommunications and Growth Business Services industries. The Chicago-based firm pioneered The Leaders Strategy™ - finding and partnering with management leaders in core domains to identify, acquire and build market-leading companies through transformational acquisitions and organic growth. Since its inception, GTCR has invested more than $12 billion in over 200 companies. For more information, please visit www.gtcr.com.

About SPS

Sage Payment Solutions ("SPS") provides business technology solutions to global small and medium sized companies, in every industry, that enables businesses to get paid, make payments and manage their money-simply and securely. SPS' comprehensive suite of products and services deliver easy to use technology for every stage of a client's lifecycle. For more than 20 years, SPS has been dedicated to the success of its clients, providing a seamless connection with, and between, business applications; offering valuable business insights that enable clients to run their businesses smarter, so they can run their businesses better. For more information, please visit us at www.sage.com/us/payment-processing.

About Sage

Sage is the market and technology leader for integrated accounting, payroll and payment systems, supporting the ambition of entrepreneurs and business builders. Today, business builders measure success in strong relationships, partnerships, and communities. It's why Sage helps drive today's business builders with the most intelligent and flexible cloud-enabled software, support and advice to manage everything from money to people. Daily, more than 13,000 Sage colleagues in 23 countries work with a thriving global community of over 3 million entrepreneurs, business owners, tradespeople, accountants, partners and developers to champion the success of business builders everywhere. And as a FTSE 100 business, we are passionate about doing business the right way, supporting our local communities through the Sage Foundation. Sage - the market and technology leader for integrated accounting, payroll and payment systems, powered by the cloud and supporting the ambition of the world's entrepreneurs and business builders. Because when business builders do well, we all do. For more information, visit www.sage.com.