REPAY Buys BillingTree For $503 Million In Cash, Stocks

REPAY Buys BillingTree For $503M In Cash, Stocks

REPAY, which works in vertically-integrated payment solutions, will be acquiring BillingTree for $503 million, according to a press release.

In terms of the transaction, the price tag will include $275 million from REPAY’s balance sheet in cash, and $228 million in newly issued Class A common stock, the release stated.

REPAY CEO John Morris said in the release that he looks 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.”

The acquisition will improve REPAY’s scale and client diversity, according to the release.

“BillingTree satisfies all of our acquisition investment criteria, including a large addressable market opportunity that is amid a shift away from legacy payment methods and towards the technology-first, industry-specific payment mediums in which BillingTree specializes,” Morris said in the release. “Additionally, BillingTree has strong recurring revenue streams, high customer retention, approximately 50 unique [independent software vendor (ISV)] integrations, an attractive financial profile, and numerous opportunities for synergy realization. We are looking forward to welcoming BillingTree into the REPAY family and together pursuing many amazing growth opportunities ahead.”

Morris added in the release that the companies could “capture more of the massive addressable market in payments and combine our incredible team members and technology to create simplified experiences for merchants across our collective, ever-expanding verticals.”

BillingTree was founded in 2003 and has worked in providing omnichannel integrated payment solutions for healthcare, credit unions and accounts receivable management companies. The company boasts a “variety” of payment channels and reporting capabilities to help speed up payment, according to the release.

Like most industries, healthcare has taken a beating from the pandemic, with many people shirking medical visits and staying home amid the presence of COVID-19, PYMNTS reported.