Dive Brief:

• Innovative Systems, a Mitchell, South Dakota-based billing and payments software services company, was acquired by the Chicago private equity firm GTCR this month. The software firm caters to regional broadband internet service providers, and also offers operating software in addition to its bill processing capabilities, according to a Wednesday press release on the deal.
• As part of the purchase from the private equity firm Alpine Investors, a new CEO, Scott Alcott, was appointed to lead Innovative Systems. Alcott was formerly chief information officer at the telecommunications company Comcast, from 2012 to 2018, according to his LinkedIn profile. The company was formed in 1998 and was previously led by founder Roger Musick for more than two decades, according to his LinkedIn profile.
• “Innovative Systems' platform creates a seamless, end-to-end operational and billing experience that eliminates the cost and complexity associated with integrating and maintaining disconnected point solutions,” the release said.

Dive Insight:

A spokesperson for the investment firm declined to comment on financial details of the transaction. Innovative Systems has about 200 employees, the spokesperson said.

GTCR is acquiring Innovative Systems after reaping significant gains on its 2023 purchase of majority ownership in the merchant services company Worldpay for $18.5 billion. The investment firm turned around quickly and agreed to sell its Worldpay stake for $24.25 billion earlier this year, reaping significant gains after owning the property for a relatively short period by private equity measures.

While there was a dearth of merger and acquisition activity in the first half of the year, industry consultants expect transactions to pick up in the second half of the year.

So far, some companies have been tucking in smaller additions. For example, mega processor Fidelity National Information Services bought Canadian company Everlink Payment Services, disclosed this month, to fuel its international expansion. FIS CEO Stephanie Ferris said the company has more acquisitions in the works.

The smaller processor rival Payroc WorldAccess has been on an acquisition tear. This month it announced it bought BlueSnap, a payments orchestration firm that has focused on the middle market, and payment gateway services provider Agilisa Technologies. That was after disclosing the purchase of cloud-based firm LedgerPay in July.