Atlanta-based REPAY said terms included $8 million in cash and $8 million in further payments that will be triggered if cPayPlus meets performance milestones.
REPAY says it handled $3.8 billion in card payments for the quarter that ended May 31 and generated gross profit of $28.7 million on revenue of $39.5 million for the period. All were up more than 50 percent from comparable year-ago figures.
“We continue to observe unprecedented demand for comprehensive, technology-first B2B automation and payment solutions, as enterprise customers look for ways to reduce costs and operate more efficiently in an increasingly digital environment,” John Morris, CEO of Atlanta-based REPAY, said in a prepared statement. “The competition typically focuses on either accounts receivable or (accounts payable). While we already do both, the cPayPlus acquisition will strengthen our AP automation offering, further enabling us to deliver best-in-class solutions that address all of our clients’ AR and AP automation and payment needs.”
In touting the deal, Morris expressed sentiments similar to those shared by other industry players who have found that COVID-19's work-from-home demands are driving increased demand for automated payment systems.
“We are thrilled to welcome the cPayPlus team into the REPAY family,” he said. “(cPayPlus CEO) Darin Horrocks and Seth Barnard are AP automation veterans. We are confident that their leadership and vision will prove invaluable as we work together to accelerate growth in our B2B business.”
Horrocks said in a prepared statement: “We look forward to working with REPAY to capitalize on the ever-increasing demand for AP automation solutions. The already high need for our product has been amplified since the onset of the COVID-19 pandemic. REPAY’s extensive resources will enable us to take advantage of this demand and develop more complete B2B offerings for our clients.”
In addition to reducing demand on staff, automated accounts payable systems can make it easier for purchasers of products or services to take advantage of prompt-payment discounts.
cPayPlus was founded in 2017 and is based in Salt Lake City.