Payment Data Systems, www.paymentdata.com – the payment solutions provider bridging the gap for merchants, billers, banks, etc. via a sophisticated yet intuitive array of world-class payment acceptance products, reported signing of a Letter of Intent (LOI) to acquire 100% of Electronic Recovery Systems LLC’s (ERS) assets today.
Chairman and CEO of PYDS, Michael Long, cited the leadership status of ERS in the ACH (Automated Clearing House) return processing market and its minimal personnel as shining indicators that this acquisition spells success for the Company and its shareholders, given a market niche that generates $1.2M in annual revenues and $300k in annualized EBITDA.
Long praised the iterative process of parallel competencies between the two firms, and a subsequent minimalism in requisite sales forces, both of which will result in a highly efficient and tight-knit machine capable of readily obtaining the projected increase in EBITDA to more than $800k annually post-acquisition.
Long also detailed the robust position of ERS in the ACH processing market, via solutions ranging from return check services and consolidated returns to electronic check conversion, check guarantee and verification.
Furthermore, ERS’s dominant position in the sector is underwritten by a bevy of Fortune 1000 merchant and recurring biller clientele, representing a massive front which opens up the entire field for the PYDS family of companies to win substantial revenue streams.
The ability to cross-sell and find acquisitions for PYDS will dovetail nicely into the emergence of an overarching unified payments processing facility which can offer merchants a highly sought after, one-stop-shop for all of their payments service requirements.
Long argued that the accretive earnings and parallel impetus which PYDS’s sales and marketing strategies engender make this acquisition an ideal stratagem for rendering the Company “immediately profitable” via generation of some $200k per quarter in cash.
The LOI is contingent upon due diligence from both parties, valid financing, and customary closing documents with standard terms/conditions; additional specific terms of the LOI have not yet been disclosed to the public.
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