Payroc WorldAccess, which processes card payments globally for merchants, has agreed to acquire a cloud-based peer, LedgerPay, according to a Monday press release.
Tinley Park, Illinois-based Payroc said in the release that the purchase will allow it to provide end-to-end processing for all major card brands and debit networks, while also offering a suite of cloud-based payments services.
Payroc has been on an acquisition spree over the past seven years, vacuuming up smaller independent firms and processors to create one of the largest non-bank companies in the industry. Last year, the suburban Chicago company made its biggest acquisition yet, forking over $440 million in cash to buy the payments side of publicly-traded company i3 Verticals. (Payroc didn’t buy its software business.)
The latest business acquired appears to be a unit of Quisitive Technology Solutions. LedgerPay operates under the brand name PayiQ and was identified as of last year as a division of the company Quisitive on the LinkedIn profile of its CEO, Mike Reinhart, who is also pictured on PayiQ’s website.
Payroc’s CEO, James Oberman, called the LedgerPay buyout a “game-changer” because it extends the company’s processing capabilities.
“With PayiQ, we now own and operate an enhanced, fully-secure processing platform with direct network connections to all the major card brands,” Oberman said in the release. “This acquisition sets a new standard for Payroc.”
The company expects the acquisition to be completed in the third quarter.
Payroc’s history is longer than that of many fintech upstarts. Oberman’s son, Adam Oberman, started the company as a payments sales business with his brother Nick Oberman in 2003 and expanded it over time. In 2015, the brothers lured their father, an industry veteran, to join the growing company as its CEO.
Adam Oberman, who is the company’s president, suggested there could be more purchases on the way soon. When asked for comment on the LedgerPay deal, including how much Payroc paid for the purchase, he sidestepped the question, but noted other transactions in the offing.
“At the moment, we are in the midst of three other strategic acquisitions, and as such, we’re currently engaging only with firms that are directly aligned with those initiatives,” Oberman said by email. “Given that, I’m unable to comment on the LedgerPay acquisition at this time.”
Payroc suggested in the release that it will retain LedgerPay employees. “Upon closing, PayiQ's team will join Payroc's global development hubs to ensure seamless technology and go-to-market integration,” the release said.
