SAN ANTONIO, Sept. 06, 2017 (GLOBE NEWSWIRE) -- Payment Data Systems, Inc. (NASDAQ:PYDS), an integrated electronic payment solutions provider, announced that the acquisition of Singular Payments, LLC was finalized on September 1, 2017. The transaction will add over 1,200 new merchant customers, which are primarily health care related, and over $500 million in annual payment processing volume to Payment Data Systems.
We expect Singular to immediately contribute over $10 million in annualized revenue to Payment Data Systems. The result should cause Payment Data Systems to record all-time high revenues in the fourth quarter of 2017, and a 10%-15% increase in revenues in the third quarter of 2017 as compared to the same period in 2016.
“We are thrilled that we have closed this transaction and are now able to realize the associated value that Singular brings. This strategic acquisition will accelerate our growth and is consistent with our strategic plans to grow the revenues of our Company,” stated Louis Hoch, President and CEO of Payment Data Systems.
Hoch continued adding, “Singular has a proven track record of winning new business, and we will leverage their sales excellence to enhance market share for our innovative products and services that their clients may have not been exposed to yet. Similarly, we intend to offer their products to our customers. The combination of the two companies should create an entity that delivers on revenue growth.”
Vaden Landers, CEO of Singular Payments, said “We are pleased to be joining forces with a company that has world class capabilities and is focused on providing quality, secure payment processing. We are very excited to have access to more innovative payment solutions to offer to our existing clients while cross-selling our products to their customers. The result should be a stronger combined entity that focuses on market leadership through accelerated growth.”
Mr. Landers and all the Singular employees will be joining the Payment Data Systems team and bring significant payment processing experience and industry relationships to the Company. Mr. Landers will be a key member of the senior executive team as the Company’s Chief Revenue Officer.
Payment Data Systems acquired Singular with a combination of cash generated from operations and common stock, for a total consideration of $5 million. The total cash consideration was $1.5 million which included $600,000 for the repayment of the Singular note that was due to Payment Data Systems. The stock consideration was 1,515,152 shares of common stock of the Company valued at $3.5 million or $2.31 a share. The stock is subject to a minimum lock-up period of 24 months.
About Payment Data Systems, Inc.
Payment Data Systems, Inc. (NASDAQ:PYDS), a leading integrated payment solutions provider, offers a wide range of payment solutions to merchants, billers, banks, service bureaus, and card issuers. The Company operates credit, debit/prepaid and ACH payment processing platforms to deliver convenient, world-class payment solutions and service to their clients. The strength of the Company lies in its ability to provide tailored solutions for card issuance, payment acceptance, and bill payments as well as its unique technology in the prepaid sector. Payment Data is headquartered in San Antonio, Texas, and has offices in New York, New York; Long Beach, California; St. Augustine, Florida and Nashville, Tennessee. For additional information please visit www.paymentdata.com. Websites: www.singularpayments.com, www.payfacinabox.com, www.akimbocard.com and www.ficentive.com. Find us on Facebook®.
FORWARD-LOOKING STATEMENTS DISCLAIMER
Except for the historical information contained herein, the matters discussed in this release include forward-looking statements which are covered by safe harbors. Those statements include, but may not be limited to, all statements regarding management’s intent, belief and expectations, such as statements concerning the acquisition of Singular Payments, our future and our operating and growth strategy. These forward-looking statements are identified by the use of words such as “believe,” “intend,” “look forward,” “anticipate,” “should,” and “expect” among others. Forward-looking statements in this press release are subject to certain risks and uncertainties inherent in the Company’s business that could cause actual results to vary, including such risks related to the closing of the proposed Singular acquisition, the realization of the anticipated opportunities from the proposed Singular acquisition, the management of the Company’s growth, the loss of key resellers, the relationships with the Automated Clearinghouse network, bank sponsors, third-party card processing providers and merchants, the security of our software, hardware and information, and compliance with complex federal, state and local laws and regulations, and other risks detailed from time to time in the Company’s filings with the Securities and Exchange Commission including its annual report on Form 10-K for the fiscal year ended December 31, 2016. One or more of these factors have affected, and in the future, could affect our businesses and financial results in the future and could cause actual results to differ materially from plans and projections. We believe that the assumptions underlying the forward-looking statements included in this release will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by us or any other person that our objectives and plans will be achieved. All forward-looking statements made in this release are based on information presently available to our management. We assume no obligation to update any forward-looking statements, except as required by law.
Investor Contact: Preston Graham Preston@stonegateinc.com 972-850-2001