Payment Data to Acquire Assets of ERS
The LoI is non-binding and is dependent upon both organizations completing satisfactory due diligence, the receipt of acceptable financing, and the completion of acceptable closing documents containing customary terms and conditions.
Michael Long, chairman and CEO of Payment Data Systems, said: “We are truly excited about the pending acquisition of ERS as they represent true leadership in the ACH return processing market. ERS is currently generating over $1,200,000 in annualized revenues and $300,000 in annualized EBITDA with minimal personnel.
“ERS offers a variety of world-class ACH processing solutions, including return check services, electronic check conversion, consolidated returns, check guarantee, and check verification. We believe ERS is a highly compatible acquisition by virtue of their strong presence in the ACH processing market which is underscored by their impressive customer list of recurring billers and Fortune 1000 merchants.
“These relationships will open up new revenue opportunities for the combined Payment Data Systems family of companies to engage in cross selling, acquisitions and creating a unified payments processing company, where merchants have one source for all of their payment services. Furthermore, this acquisition is expected to be highly accretive to our earnings, as well as being aligned with our sales and marketing strategies. The immediate overall financial effect of the transaction is anticipated to make Payment Data Systems a profitable company that generates cash of at least $200,000 per quarter.”
Will the acquisition benefit Payment Data?
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