JetPay, a US-based card and payments processor, has agreed to merge with locally-based CollectorSolutions (CSI) to add nearly $700m of credit and debit card processing volume to the firm.
The merger agreement will also add nearly $4.5bn of annual e-check processing volume to JetPay.
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Founded in 1999 by Gene Valentino, CSI offers debit and credit card processing services to government agencies and utilities across the US.
JetPay in a statement said that the merger will be funded through the shares issuance of JetPay common stock and the assumption of debt.
The transaction is scheduled to close in the second quarter of 2016, and is subject to customary regulatory and other closing conditions.
JetPay chairman and CEO Bipin Shah said: "I firmly believe that more and more consumers will pay government, utility and other household bills electronically, and serving this market is one of the core ecommerce strategic pillars of JetPay.
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By GlobalData"CSI will not only provide us with enhanced technology, they will also help us expand in these and similar segments, and will provide an excellent customer base and channel to offer our payroll and prepaid card services."
CSI chairman Gene Valentino said: "This merger establishes one complete and integrated end-to-end solution for our customers to process bills and payments through the combination of CSI’s highly configurable payment gateway with JetPay’s real-time processing of credit and debit cards."
