REPAY Buys Payix in Deal Worth up to $115M

Vertically-integrated solutions platform REPAY is acquiring payment technology service Payix in a deal that could be worth up to $115 million, according to a Monday (Jan. 3) press release.

A total of $95 million will be paid at closing, and up to $20 million could be paid through an earnout, depending on Payix’s performance in 2022, the release stated.

Atlanta-based REPAY said in the release it had also upsized its revolver capacity by $60 million and increased its revolving credit facility from $125 million to $185 million. The company used its revolver capacity and cash on hand to finance the purchase.

“We are thrilled about the acquisition of Payix, a highly complementary business to REPAY,” said REPAY CEO John Morris in the release. “With its robust and highly flexible technology platform, Payix creates a uniquely positive experience and adds value for both the lender and borrower. Payix also has a strong pipeline and product roadmap, positioning it well for 2022 and beyond. We look forward to welcoming the Payix team into the REPAY family.”

Founded in 2016, Payix’s platform facilitates payments, data exchange and communication to support customer service and collections for loan repayments, according to the release. The company is expected to generate more than $15 million in revenue this year, as well as a top line and gross profit growth of more than 40% a year through 2023.

REPAY said in the release the deal enhances its position “in the large and growing automotive vertical, and accelerates expansion into the attractive buy now, pay later (BNPL) space.”

It also offers a source of reliable recurring transaction revenue, access to a platform servicing more than 300,000 borrowers, and Payix’s proprietary software, the release stated.

This is REPAY’s second big purchase in the last eight months. In May, the company bought payments solution firm BillingTree for $503 million.

Read more: REPAY Buys BillingTree for $503 Million in Cash, Stocks

Morris said at the time that the purchase strengthened his firm’s “position in healthcare, credit unions and accounts receivable management with the help of BillingTree’s team and strong platform capabilities.”

In September, REPAY formed a partnership with fellow payments company Veem that let REPAY expand its cross-border payment options while Veem took advantage of REPAY’s B2B virtual card and acquiring capabilities.

See more: REPAY, Veem Collaborate on B2B Payments