UBPS to buy payment companies for $179 million
(Reuters) - Universal Business Payment Solutions Acquisition Corp UBPS.O, a blank check company, said it has agreed to buy three payment companies for $179 million, making its foray into providing transaction processing services to small businesses.
Blank check companies are formed to acquire one or more businesses through a merger, share exchange, asset acquisition, plan of arrangement or similar business combination.
UBPS said it will buy Electronic Merchant Systems, a credit and debit card sales company; Jet Pay LLC, a card processor; and two other related companies that offer tax filing and payment processing services.
UBPS will pay $104 million in cash and $38 million in newly issued common stock. The rest will be paid in the future on achieving certain targets, the company said in a statement.
The combined entity is expected to post revenue of $78.9 million in 2012.
UBPS will fund the transaction, expected to be completed in a year, by a $60 million credit facility and cash held in trust.
Shares of Chester County, Pennsylvania-based UBPS closed at $6.00 on Friday on the Nasdaq.
(Reporting by Eileen Anupa Soreng in Bangalore; Editing by Sreejiraj Eluvangal)