Repay Holdings Corporation (REPAY), which offers technology for inbound and outbound payments, has purchased integrated accounts payable (AP) automation company Kontrol Payables, according to a Tuesday (June 22) announcement.
The deal includes a maximum purchase price of $11 million; $8 million of that amount was paid at closing, according to the announcement, which noted that the purchase will be financed with cash on hand.
“With its AP automation capabilities and supplier network, Kontrol is the perfect partner to grow our AP automation business and enhance our comprehensive B2B offering,” REPAY CEO John Morris said in a statement. “In an increasingly digital world, there continues to be ever-strengthening demand for technology-first B2B automation and payment solutions, as enterprise customers aim to reduce costs and streamline back-office processes.”
Kontrol works with customers in sectors such as education, manufacturing, software, food production and construction. The company, which was established in 2011, harnesses its 30+ enterprise resource planning (ERP) connections and network of more than 13,000 vendors to “deliver efficiencies” for its customers’ AP processes. It runs its customers’ outbound payments through various methods such as check, automated clearing house (ACH), enhanced ACH and virtual card. This year, Kontrol is anticipated to handle roughly $300 million of virtual card volume.
The news comes as REPAY inked a deal to buy BillingTree for $503 million. That deal’s price tag was to include cash from REPAY’s balance sheet and newly issued Class A common stock. Morris said in a May press release that he looked forward “to further expanding our position in healthcare, credit unions and accounts receivable management with the help of BillingTree’s team and strong platform capabilities.”
BillingTree, which was established in 2003, offers omnichannel integrated payment solutions for accounts receivable (AR) management firms, credit unions (CUs) and healthcare.