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Atlanta company to buy JetPay for $184M

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JetPay's Upper Macungie Office (File photo)
JetPay's Upper Macungie Office (File photo)

Atlanta-based NCR announced Monday it will acquire JetPay, headquartered in Upper Macungie Township, for $184 million.

JetPay, a national card processing, payroll and human resources services company, employs about 250 people, including about 140 at its headquarters. The company also has offices in Florida and Texas.

JetPay had annual revenue of more than $76 million in 2017.

The deal was approved by the board of directors at both companies and is expected to close by the end of the year pending regulatory approval, NCR said.

JetPay is expected to continue as a stand-alone operation with its management and staff in place, according to Digital Transaction News.

Peter Davidson, vice chairman of JetPay, said JetPay had been looking to expand and had been talking to potential partners, the report said.

Diane Faro, CEO of JetPay, said the acquisition “dramatically accelerates our capabilities.”

NCR’s offer of $5.05 per JetPay share represents a multiple of 2.9 times stock analysts’ consensus 2018 revenue forecast of $63.4 million for JetPay, NCR said.

NCR is a global company that creates hardware and software that help run transactions across multiple industries, including financial, retail, hospitality, travel, telecom and technology. The company has 30,000 employees and does business in 180 countries.

NCR said its acquisition of JetPay will enable it to integrate a cloud-based payments platform into NCR’s point-of-sale technology for the retail and hospitality industries.

JetPay serves about 10,000 merchants and has relationships with about 200 independent sales organizations, independent software vendors, value-added resellers and financial institutions.

JetPay processed $5.3 billion in payment card volume and $5.2 billion in electronic check volume, according to published reports.

JetPay has a division that provides payroll processing and human resources services that process $6.8 billion in payroll volume in 2017, a report said.

“Enabling payments as part of our transactions is part of our long-term strategy to create integrated value for our clients,” Michael D. Hayford, president and CEO of NCR, said in a statement.

The acquisition reflects a wider trend of consolidation in the payments processing industry.

Diane Faro, CEO of JetPay, said NCR’s global footprint, brand recognition and track record of innovation will help JetPay expand.

The deal comes less than a month after JetPay named Laurence L. Stone as chairman. Stone is a major stockholder in JetPay and has agreed to tender his shares to NCR, along with another investor, Flexpoint Ford, a private equity firm.

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