PHILADELPHIA, PA | Universal Business Payment Solutions Acquisition Corporation ("UBPS" or the "Company") (NASDAQ: Common Stock:"UBPS", Units:"UBPSU", Warrants:"UBPSW"), a special purpose acquisition company, announced that it has entered into definitive agreements to acquire three profitable and growing companies to facilitate its strategy of providing end-to-end transaction processing services to small businesses:
- Electronic Merchant Systems ("EMS¡"), a major credit and debit card sales organization;
- Jet Pay LLC ("JetPay"), a top-15 U. S. credit and debit card processor according to Nilson; and
- A D Computer Corporation ("AD Computer") and Payroll Tax Filing Services, Inc. ("Payroll Tax Filing"), related payroll processing and tax filing companies.
Details of Transaction
UBPS will acquire the three companies in a transaction valued at approximately $179 million, of which $104 million will be paid in cash, $38 million in newly issued UBPS common stock, and the balance as future payments in cash and UBPS stock (with $25 million of such future payments contingent on the achievement of certain targets). The cash portion of the consideration will be funded by a combination of a $60 million credit facility and UBPS cash held in trust.
The business combination is subject to approval by the Company’s stockholders, as well as regulatory approval and other customary closing conditions. Assuming these conditions are met, the business combination is expected to close early in the fourth quarter of this year.
Find the full announcement here