Repay Holdings Seals Deal For CPS Payment Services

Repay Holdings said on Tuesday (Nov. 3) that it has completed its multimillion-dollar acquisition of CPS Payment Services, a B2B payments and accounts payable (AP) automation technology provider.

Atlanta-based Repay said it had paid $78 million at the closing of the deal, with another $15 million in payments contingent on how CPS performs during various periods through the end of 2022, potentially pushing the final cost to $93 million.

Repay CEO John Morris noted that the deal will strengthen the firm’s offerings while also helping the FinTech and payment processing solutions provider push into new sectors. Repay’s offerings include credit and debt, as well as automated clearing house processing and instant funding.

“We are thrilled to announce the quick completion of the CPS acquisition,” Morris said in a press release. “CPS will substantially enhance our B2B offerings and will bring us the opportunity to introduce REPAY’s solutions to new verticals, including education, government and media sectors.”

Launched in 2011 and also headquartered in Atlanta, CPS offers a software platform that is designed to facilitate the “issuance, execution and reconciliation” of payments by “virtual card, enhanced ACH, ACH and check,” the companies noted.

The centerpiece of CPS’ offerings is the firm’s proprietary AP automation software. The CPS Payment Portal provides “workflow management and automation” for B2B payments, “from ERP integration to payment execution and reconciliation,” the companies noted.

CPS has built a database of “over 20,000 virtual card and enhanced ACH accepting suppliers,” while also tallying more than 160 enterprises across a range of sectors, with a concentration in healthcare, education, government, media, and hospitality, the companies said.

Through its acquisition of CPS, Repay expects to boost its B2B payment volume to more than $4 billion, while expanding its network of virtual card- and ACH-accepting suppliers to over 50,000, the company noted when initially announcing the deal last month.